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AMERICAN  FOREIGIS'  FOOD  ASSISTANCE 
Public  Law  480  and  Related  Materials 


COMMITTEE  ON  AGRICULTURE 

AND  FORESTRY 

UNITED  STATES  SENATE 


AUGUST  13,  1976         '"->->>,,///// 


Printed  for  the  use  of  the  Committee  on  Agriculture  and  Forestry 


U.S.  GOVERNMENT  PRINTING  OFFICE 
67-053  WASHINGTON   :    1976 


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Washington,  D.C.   20402  -  Price  70  cents 

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COMMITTEE  ON  AGRICULTURE  AND  FORESTRY 

HERMAN  E.  TALMADGE,  Georgia,  Chairman 
JAMES  O.  EASTLAND,  Mississippi  ROBERT  DOLE,  Kansas 

GEORGE  McGOVERN,  South  Dakota  MILTON  R.  YOUNG,  North  Dakota 

JAMES  B.  ALLEN,  Alabama  CARL  T.  CURTIS,  Nebraska 

HUBERT  H.  HUMPHREY,  Minnesota  HENRY  BELLMON,  Oklahoma 

WALTER  D.  HUDDLESTON,  Kentucky  JESSE  HELMS,  North  Carolina 

DICK  CLARK,  Iowa 
RICHARD  B.  STONE,  Florida 
PATRICK  J.  LEAHY,  Vermont 

Michael  R.  McLeod,  General  Counsel  and  Staff  Director 

Henry  J.  Casso,  Chief  Economist 

Carl  P.  Rose,  Counsel 

James  W.  Giltmier,  Professional  Staff  Member 

William  A.  Taggart,  Professional  Staff  Member 

Dale  L.  Stansbury,  Economist 

Thomas  Reese  Saylor,  Economist 

James  C.  Webster,  Chief  Clerk  and  Press  Secretary 

Phillip  L.  Fraas,  Assistant  Counsel 

Stephen  E.  Storch,  Assistant  Counsel 

Roy  Frederick,  Econornist 

Stuart  B.  Hardy,  Professional  Staff  Member 

Reider  J.  Whpte,  Research  Assistant 
~  'Q'e.TViM..M.K^Qi^,  Clerical  Assistant 

JT  ..^  Helen  A.  Miller,  Clerical  Assistant 

^    ^,-  Laura  D.  Rice,  Clerical  Assistant 

^  .^ .'  Ma.rgx'R^tKei.i.^y,  Clerical  Assistant 

<   "C:  '  Denise  a.  Love,  Assistant  Clerk 

Maureen  T.  Burke,  Clerical  Assistant 

Nancy  W.  Whitehead,  Clerical  Assistant 

Ann  C.  Bond,  Clerical  Assistant 

Dune  G.  Covington,  Finance  Secretary 

Jo  R.  Patton,  Clerical  Assistant 

Ellen  J.  Williams,  Clerical  Assistant 

James  S.  BARKSDiLE,  Clerical  Assistant 

(ID 


3m 


CONTENTS 


Page 

Introduction v 

How  P.L.  480  programs  operate 1 

A  brief  history  of  P.L.  480 5 

Agricultural  Trade  Development  and  Assistance  Act  of  1954,  as  amended 

(P.L.  480) 15 

Statistical  tables  relating  to  P.L.  480 33 

(HI) 


Digitized  by  tiie  Internet  Arciiive 
in  2013 


littp://archive.org/details/amereignfOOunit 


INTRODUCTION 


America's  foreign  food  assistance  is  provided  under  the  authority 
of  P.L.  480,  the  Agricultural  Trade  Development  and  Assistance  Act 
of  1954. 

P.L.  480,  popularly  called  the  Food  for  Peace  program,  consists  of 
two  operative  titles. 

Under  title  I,  the  Commodity  Credit  Corporation,  a  public  lending 
institution  within  the  U.S.  Department  of  Agriculture,  makes  loans 
on  highly  favorable  terms  to  finance  the  sale  of  U.S.  agricultural 
commodities  to  developing  nations. 

Title  II  provides  authorit}^  for  the  President  to  buy  American 
farm  products  and  donate  them  to  American  voluntar^^  agencies,  the 
World  Food  Program,  or  to  foreign  governments  for  distribution  to 
needy  individuals  abroad. 

For  over  20  years  our  Food  for  Peace  program  has  served  as  a 
model  of  humanitarian  food  assistance.  Not  onl}'  have  concessional 
sales  been  an  important  factor  in  the  expansion  of  markets  for  our 
farm  products  abroad,  but  food  assistance  has  provided  essential 
help  for  the  poorest  countries  of  the  world  to  reach  for  self -sustained 
economic  growth. 

Every  year  almost  90  million  people  benefit  from  maternal  and 
child  care,  school  lunch,  food  for  work,  and  other  humanitarian 
programs.  For  millions  of  disaster  victims  throughout  the  world, 
Food  for  Peace  shipments  have  meant  life  itself.  In  more  than  100 
countries  throughout  the  world,  the  burlap  bags  of  farm  commodities 
marked  with  the  phrase,  ''Given  by  the  People  of  the  United  States 
of  America"  are  a  familiar  reminder  that  Am. erica  still  practices  the 
ethic  of  sharing  its  abundance. 

Over  the  years.  Congress  has  modified  P.L.  480  to  meet  changes  in 
the  world  food  situation  and  supply  and  demand  conditions  in  the 
United  States. 

The  objectives  of  the  program  are  outlined  in  section  2  of  the  Act 
itself.  Broadly  stated,  they  are: 

•  expanding  international  trade; 

•  developing  and  expanding  overseas  markets  for  American  farm 
products; 

•  preventing  or  alleviating  malnutrition  and  hunger   throughout 
the  world ; 

•  encouraging  economic    development   and   improving   food   pro- 
duction in  less  developed  countries ; 

•  providing  an  additional  outlet   for   the   products   of  American 
farms  and  ranches,  especially  in  times  of  surplus;  and 

•  advancing  the  objectives  of  U.S.  foreign  polic3\ 

The  emphasis  on  any  one  objective  will  vary,  over  time,  as  cir- 
cumstances vary  over  the  years. 

(V) 


VI 

Exports  under  P.L.  480  agreements  in  the  past  have  increased 
overall  U.S.  agricultural  exports  when  there  has  been  a  need  to  do 
so.  Most  agreements  also  require  the  recipient  country  to  buy  specified 
quantities  on  a  commercial  basis  from  the  world  market,  in  many 
cases  from  the  United  States. 

In  order  to  provide  those  interested  in  and  working  with  our  Food 
for  Peace  program  ^vith  an  updated  version  of  P.L.  480,  the  Com- 
mittee on  Agriculture  and  Forestry  has  compiled  P.L.  480,  as  amended 
(most  recently,  by  the  International  Development  and  Food  Assistance 
Act  of  1975),  along  ^^dth  background  material  on  the  operations  of  our 
Food  for  Peace  efforts. 

It  is  the  hope  of  the  Committee  that  this  material  will  provide 
useful  background  and  current  reference  to  those  interested  in  P.L.  4S0 
legislative  and  program  activities. 

P.L.  480  traditionally  has  been  used  to  increase  the  export  of  U.S. 
agricultural  commodities  and  suppor  tf  arm  income  b}'  providing  con- 
cessional terms  for  countnes  unable  to  buy  on  commercial  terms. 

The  program  also  has  supported  market  development  activities  in 
both  recipient  countries  and  other  countries  where  P.L.  480  earnings 
could  be  used.  Title  I  has  been  the  primary  means  of  achieving  this 
objective  although  the  programs  under  title  II  have  market  develop- 
ment implications. 

Another  objective  of  the  program  is  to  promote  economic  develop- 
ment in  less  developed  countries. 

Under  title  I  agreements,  the  funds  generated  by  the  P.L.  480  com- 
modities are  used  by  the  recipient  government  to  promote  economic 
development,  including  agricultural  self-help  projects.  Commodities 
donated  under  title  II  are  often  used  for  food-for-work  projects  wliich 
are  part  of  overall  development  plans. 

In  recent  3'ears,  P.L.  480  shipments  have  leveled  off  at  about 
SI  billion,  down  from  a  high  of  SLo  bilhon  in  the  mid-sLxties.  How- 
ever, considerably  smaller  quantities  are  being  shipped  due  to  sub- 
stantially higher  prices  for  the  commodities  programed. 

Whereas  the  annual  average  volume  of  shipments  between  1968 
and  1972  was  over  11  million  metric  tons,  the  average  betvv'een 
1973  and  1975  fell  to  about  5.5  million  metric  tons. 


HOW  P.L.  480  PROGRAMS  OPERATE 


Title  I 


Title  I  of  P.L.  480  provides  for  concessional  sales  of  agricultural 
commodities  to  friendly  countries.  Until  the  end  of  1971,  the  law 
permitted  sales  agreements  which  provided  for  payment  in  local 
currencies  on  delivery.  Since  1972,  sales  agreements  have  been  ne- 
gotiated only  for  long-term  credit  repayable  in  dollars  or  in  cur- 
rencies convertible  to  dollars.  Convertible  local  currency  agree- 
ments usually  allow  a  longer  period  for  repayment  than  dollar  credit 
agreements  and  are  used  when  a  complete  transition  from  local  cur- 
rency sales  to  dollar  credit  is  not  feasible. 

Dollar  credit  agreements  may  provide  for  a  specific  down  payment 
in  dollars,  foreign  currency  or  both,  upon  delivery  of  the  commodities. 
The  balance  of  the  agreement  is  repaid  in  dollars  in  approximately 
equal  annual  installments  over  a  period  of  up  to  20  years.  Such  agree- 
ments may  also  include  a  grace  period  of  up  to  2  years,  during  which 
principal  pajmients  are  not  required. 

Repayment  under  convertible  local  currency  agreements  is  in 
dollars  or,  at  the  option  of  the  United  States,  in  convertible  foreign 
currency.  The  maximum  term  available  under  this  t3^pe  of  financing 
is  40  years,  including  a  grace  period  up  to  10  years.  A  down  payment, 
in  dollars,  foreign  currency,  or  both,  also  may  be  required  in  this  kind 
of  agreement.  Interest  rates  under  both  types  of  financing  are  set  by 
law  at  minimums  of  2  percent  during  a  grace  period  and  3  percent 
thereafter.  The  minimum  rates  have  been  used  in  the  majorit}''  of 
title   I    sales    agreements. 

Although  the  Commodity  Credit  Corporation  finances  the  sale  and 
export  of  commodities  under  title  I,  actual  sales  are  made  by  private 
U.S.  suppliers  to  foreign  importers,  government  agencies,  or  private 
trade  entities. 

Section  401  of  the  Act  provides  that  the  Secretary  of  Agriculture 
must  determine  the  availability  for  concessional  export  of  commodities 
included  in  sales  agreements.  In  determining  this  availability,  the 
Secretary  must  consider  U.S.  productive  capacity,  domestic  require- 
ments, farm  and  consumer  price  levels,  adequacy  of  carryover  stocks, 
and  anticipated  exports  for  dollars. 

Each  sales  agreement  under  title  I  begins  with  a  request  from  a 
foreign  government  or  private  trade  entity  for  commodities.  The 
request  is  generally  submitted  to  the  American  Embass}^  in  the  host 
country,  and  is  then  transmitted  directly  to  Washington  accom- 
panied by  recommendations  of  the  Embassy  and  supporting  evi- 
dence of  need  for  commodities  in  excess  of  likely  domestic  production 
and  normal  commercial  imports.  Such  factors  as  production  and 
consumption  patterns,  export  of  similar  commodities  and  the  supply 
position  of  the  participating  country  are  considered. 

(1) 


In  Washington  the  request  is  forwarded  to  the  Department  of 
Agriculture,  where  the  submission  is  analyzed.  From  that  analysis, 
USDA  develops  a  program  which  provides  for  suitable  commodity 
quantities,  establishes  levels  of  required  commercial  imports  from 
the  United  States  and  friendly  countries  (usual  marketing  require- 
ments), and  includes  self-help  measures  suitable  to  the  needs  of  the 
requesting  country.  The  program  proposal  also  deals  with  the  use  of 
sales  proceeds  to  be  generated  under  the  proposed  agreement,  on  the 
basis  of  recommendations  of  AID,  and  incorporates  all  other  neces- 
sary details. 

The  Department  of  Agriculture  submits  its  proposed  program  to 
the  P.L.  480  Interagency  Staff  Committee  (ISC).  This  committee  is 
chaired  by  the  Department  of  Agriculture  and  includes  Treasury, 
State/AID,  Defense,  Commerce,  and  Office  of  Management  and 
Budget  representatives.  The  committee  considers  factor:  bearing  on 
the  program,  such  as: 

a.  The  country's  need  for  the  commodit}^,  foreign  exchange 
position,  and  overall  economic  status; 

b.  The  possible  impact  of  a  title  I  program  on  U.S.  dollar  sales 
and  other  export  programs,  as  well  as  U.S.  needs  for  local 
currency; 

c.  The  effect  of  such  a  program  on  export  markets  of  friendly 
supply  countries ;  and 

d.  The  relationship  of  the  proposed  program  to  the  foreign  aid 
program  and  the  foreign  policy  of  the  United  States. 

Once  committee  approval  is  obtained,  the  proposed  credit  terms 
are  submitted  to  the  National  Advisor}^  Council  on  International 
Monetary  and  Financial  Policies  and  consultations  with  friendly 
third  countries  are  undertaken.  Congressional  agricultural  committees 
are  informed  of  the  proposed  program  at  this  time.  Negotiating  in- 
structions are  prepared  in  Washington  and  forvrarded  to  the  con- 
cerned U.S.  Embassy.  Negotiations  are  carried  on  by  the  Ambassador 
or  his  designees  with  officials  of  the  host  government.  Private  trade 
entity  agreements  follow  the  same  procedure  but  are  generally 
negotiated  in  Washington  by  officials  of  USDA  and  the  requesting 
organizations. 

Once  a  title  I  sales  agreement  is  negotiated  and  signed,  purchase 
authorizations  are  issued  by  the  Department  of  Agriculture.  The 
purchase  authorizations  provide  for  financing  of  specific  commodity 
sales  and  specify  conditions  under  which  financing  will  be  made  avail- 
able. Where  the  applicable  sales  agreement  provides  for  a  relatively 
small  amount  of  a  commodity,  a  purchase  authorization  may  be  issued 
for  the  full  amount  in  the  agreement.  Where  agreement  amounts  are 
large,  authorizations  are  generally  spaced  over  the  supply  period,  which 
is  usually  either  a  calendar  year  or  a  U.S.  Government  fiscal  year.  For 
private  trade  entity  agreements,  purchase  authorizations  are  timed  to 
coincide  with  the  project  requirements  of  the  private  trade  entit3^ 

Concurrently  with  the  issuance  of  a  purchase  authorization,  the 
importing  country  or  private  trade  entity  generally  apphes  to  the 
Commodity  Credit  Corporation  for  a  "letter  of  commitment."  The 
letter  of  commitment  is  a  document  issued  by  the  CCC  to  the 
importing  country's  designated  American  bank,  promising  to  reimburse 
the  bank  for  any  paj^ments  made  to  American  suppliers  for  approved 


sales  made  under  the  purchase  authorization.  When  an  agreement 
requires  an  initial  payment,  the  letter  of  commitment  provides 
financing  only  for  the  balance  of  a  purchase  authorization's  value. 
For  example,  when  title  I  sales  agreements  provide  for  an  initial 
payment  of  5  percent,  all  purchase  authorizations  issued  under  that 
agreement  will  indicate  CCC  financing  of  95  percent,  and  the  CCC  will 
not  issue  letters  of  commitment  in  excess  of  95  percent  of  the  value 
of  the  authorization.  The  remainder  must  be  paid  by  the  importing 
country,  usually  through  letters  of  credit. 

Seven  days  after  issuance  of  the  purchase  authorization,  contracts 
may  be  signed  between  an  importer  and  U.S.  commodity  suppliers. 
All  sales  contracts  are  subject  to  review  and  approval  by  USD  A  to 
insure  that  they  meet  the  requirements  of  purchase  authorizations 
and  fall  within  a  prevailing  range  of  market  prices.  Suppliers  then 
deliver  the  commodities  to  vessels  specified  by  the  importing  country, 
and  obtain  documents  such  as  on-board  bills  of  lading,  inspection,  and 
weight  certificates,  USDA  Notice  of  Vessel  Approval,  etc.,  w^hich  must 
be  presented  to  the  importing  country's  designated  American  bank 
for  payment.  The  bank  pays  the  supplier  and  forwards  the  required 
documents,  including  commodity  title  documents,  to  the  ^'approved 
applicant,"  usually  a  bank.  CCC  notifies  the  American  Embassy  in 
the  importing  country  of  the  disbursement. 

Title  II 

Food  donations  are  provided  under  title  II  to  support  mother  and 
chiM  feeding  activities,  school  feeding  projects,  food-for-work,  and 
emergency  efforts  to  alleviate  the  sufferings  of  victims  of  natural 
and  man-made  disasters. 

Title  II  programs  are  carried  out  under  a  variety  of  arrangements. 
Each  program  must  have  a  ''cooperating  sponsor."  The  sponsor  may 
be  the  government  of  a  recipient  country,  a  U.S.  nonprofit  voluntary 
agency  or  a  combination  of  such  agencies,  or  intergovernmental 
organizations  such  as  the  World  Food  Program  of  the  United  Nations. 

The  administration  of  the  title  II  program  is  shared  jointly  by 
the  Agency  for  International  Development  (AID)  and  the  U.S. 
Department  of  Agriculture  (USDA).  AID  is  generally  responsible  for 
program  operations  while  USDA  determines  commodity  availabilities 
together  wdth  their  volumes  and  values.  AID  and  USDA  participate 
jointly  in  the  programing  process  through  the  Interagency  Staff 
Committee.  With  the  exception  of  those  commodities  made  available 
to  voluntary  agencies,  USDA  arranges  ocean  transportation  for  all 
title  II  commodities. 

Program  proposals  originate  from  the  overseas  staffs  of  U.S.  non- 
profit voluntary  agencies  or  from  AID  overseas  missions,  generally 
after  a  specific  request  by  the  recipient  country.  Program  proposals 
submitted  by  voluntary  agencies  are  coordinated  at  overseas  posts 
with  AID,  Food  for  Peace  ofl[icers  or  other  U.S.  staff  members  desig- 
nated for  such  responsibility.  Such  assigned  or  designated  U.S.  foreign 
service  staff  members  advise  and  assist  voluntary  agencies  in  program 
development  and  implementation.  They  also  receive,  analyze,  and 
comment  on  proposals  for  bilateral  food  grant  assistance.  U.S.  over- 
seas missions  also  coordinate  and  cooperate  with  the  representatives 

67-053—76 2 


of  the  United  Nations  agencies  such  as  UNICEF,  or  the  World  Food 
Program  regarding  proposals  for  food  grant  assistance  under  multi- 
lateral arrangements. 

In  addition,  U.S.  overseas  missions  analj^ze  and  comment  on  all 
food  grant  proposals  as  they  relate  to  the  host  country's  development 
objectives.  Finally,  the  missions  are  responsible  for  monitoring  all 
voluntary  agency  and  govemment-to-government  programs. 

Based  on  these  above  responsibilities  and  arrangements,  AID  in 
Washington  coordinates  the  approval  of  programs  through  the 
Interagency  Staff  Committee,  authorizes  the  implementation  of 
approved  programs,  and  initiates  the  procedures  which  result  in 
title  II  commodities  becoming  available  to  cooperating  sponsors  and 
recipients.  The  program  coordination  process  in  Washington  includes 
the  Departments  of  Treasury  and  Commerce  and  the  Office  of  Manage- 
ment and  Budget. 


A  BRIEF  HISTORY  OF  P.L.  480 


THE    EAKLY   YEARS 

P.L.  480  is  a  product  of  the  American  farm.  Recognizing  that 
America's  agricultural  abundance  could  be  put  to  work  toward  de- 
veloping commercial  markets  for  our  farm  production  and  helping 
meet  the  food  needs  of  the  developing  world,  the  Senate  Committee 
on  Agriculture  and  Forestry  went  to  work  in  1953  on  legislation  which 
would  permit  developing  countries  to  purchase  U.S.  farm  commodities 
on  highly  concessional  terms  for  foreign  currencies. 

On  July  24,  1953,  Senator  Andrew  Schoeppel  of  Kansas,  from  the 
Committee  on  Agriculture  and  Forestry,  reported  S.  2475,  a  bill  to 
authorize  the  President  to  use  agricultural  commodities  to  improve 
the  foreign  relations  of  the  United  States  and  for  other  purposes. 
Four  days  later,  the  bill  passed  the  Senate  by  voice  vote. 

Referred  to  the  House  Committee  on  Agriculture,  the  bill  was  not 
acted  upon  before  the  adjournment  of  the  first  session  of  the  83rd 
Congress  and  was  carried  over  into  the  second  session. 

In  the  interim,  support  grew  for  enactment  of  a  foreign  food  as- 
sistance program. 

Representative  Clifford  Hope  reported  an  expanded  version  of  S. 
2475  out  of  the  House  Committee  on  Agriculture  on  June  9,  1954, 
and  it  was  passed  by  the  House  on  June  16,  by  voice  vote. 

On  June  22,  1954,  the  Senate  requested  a  conference  with  the  House 
and  appointed  Senators  Aiken,  Young,  Th^^e,  vSchoeppel,  Ellender, 
Johnston  of  South  Carolina,  Holland,  and  Anderson  as  conferees. 

The  House  agreed  to  a  conference  on  the  same  date  and  appointed 
Congressmen  Hope,  August  H.  Andresen,  Hill,  Cooley,  and  Poage. 

On  June  29,  1954,  the  Conference  Report  (H.  Rept.  1947)  was 
submitted  to  the  House.  Both  Houses  of  Congress  approved  the  report 
of  the  Conference  Committee  on  June  30,  and  the  bill  was  signed 
into  law  on  July  10,  1954. 

PURPOSES   OF  P.L.   480 

As  originall}^  enacted,  title  I  of  P.L.  480  provided  for  the  sale  of 
U.S.  agricultural  commodities  to  foreign  governments  for  local  cur- 
rencies. 

Title  I  authorized  the  President  to  use,  with  the  agreement  of 
the  recipient  country,  foreign  currencies  earned  from  the  sale  of 
agricultural  commodities  for  eight  purposes:  for  promoting  economic 
development,  for  developing  new  markets  for  American  farm  products 
abroad,  for  the  payment  of  U.S.  obligations  abroad,  for  international 
educational  exchange,  for  the  procurement  of  military  supplies  and 
military  expenditures  abroad,   for  carrying   out  programs  of   U.S. 

(5) 


6 

tjrovernment  agencies,  grants  for  financing  the  purchase  of  goods  or 
services  for  other  countries,  and  purchase  of  strategic  materials.  At 
least  10  percent  of  the  currencies  so  generated  were  to  be  subject  to 
congressional  appropriation. 

Title  II  provided  for  the  donation  of  food  commodities  for  famine 
relief  or  other  emergency  needs  abroad. 

Title  III  authorized  food  donations  for  emergency  situations  within 
the  United  States.  Title  III  also  permitted  the  Commodity  Credit 
Corporation  to  make  commodities  available  to  nonprofit  organizations 
for  distribution  in  the  United  States  or  abroad.  Finally,  title  III 
permitted  the  President  to  barter  agricultural  commodities  for  strate- 
gic materials  or  other  goods  not  produced  in  the  United  States. 

P.L.  480  extended  in  1957  and  amended  to  provide  authority 
for  the  President  to  enter  into  barter  arrangements  with  Soviet  satellite 
nations  and  to  permit  foreign  currencies  generated  under  title  I  sales 
to  finance  projects  which  would  promote  consumption  of  U.S.  agri- 
cultural commodities.  This  latter  arrangement,  which  came  to  be 
known  as  ''Cooley  loans"  further  enhanced  the  development  aspect  of 
P.L.  480  and  increased  the  private  sector's  role. 

Restrictions  on  countries  which  could  receive  assistance  under 
P.L.  480  were  further  liberalized  under  the  1958  extension  of  the  Act. 


Throughout  the  history  of  P.L.  480,  the  Senate  Committee  on 
Agriculture  and  Forestr\'  has  led  efforts  to  strengthen  and  improve 
the  humanitarian  aspects  of  the  program. 

In  1956,  Chairman  Ellender  commissioned  Senator  Humphrey  to 
make  an  extensive  study  of  the  program.  Among  the  recommendations 
of  this  report,  which  was  submitted  to  the  Committee  on  February  18, 
1958,  was  the  creation  of  a  '"'Peace  Food  Administrator"  at  the  Wliite 
House  level. 

The  informal  title  of  the  program  Avas  proposed  by  President 
Eisenhower  in  his  January  1959  farm  message  to  the  Congress  in 
which  he  referred  to  the  use  of  American  farm  commodities  to  promote 
the  well-being  of  friendl}^  countries  throughout  the  world  as  ''using 
food  for  peace." 

The  President  announced  that  all  the  pi-ograms  using  surplus 
agricultural  commodities  abroad  would  be  combined  under  one  general 
administration  into  the  Food  for  Peace  program.  In  the  extension  of 
P.L.  480  that  year,  the  Senate  Committee  on  Agriculture  and  Forestry 
changed  the  short  title  of  the  Act  to  read  the  "Food  for  Peace  Act  of 
1959." 

MARKET    DEVELOPMENT 

In  addition  to  extending  and  increasing  the  title  I  and  title  II 
authorization,  the  1959  legislation  provided  that  at  least  5  percent  of 
the  title  I  sales  proceeds  be  made  available  for  agricultural  market 
development  activities. 

The  1959  extension  also  redefined  several  other  specified  uses  of 
foreign  currency  proceeds.  This  legislation  added  a  requirement  that 
any  commodity  which  has  been  determined  to  be  in  surplus  must  be 
first  made  available  for  donation  to  needy  persons  in  the  United  States, 
insofar  as  possible,  before  being  made  available  under  title  I. 


A  requirement  was  also  placed  on  titles  II  and  III  to  identify 
commodities  made  available  abroad  under  each  program  to  be  iden- 
tified as  being  furnished  by  the  people  of  the  United  States. 

The  most  important  change  in  the  1959  legislation  was  the  addition 
of  a  new  title  IV  which  authorized  long-term  credit  sales  of  agricultural 
commodities  for  dollars  to  friendty  nations.  Commodities  could  be 
delivered  annually  for  periods  up  to  10  3"ears  with  pa3Tnents  to  be 
made  over  a  period  up  to  20  ^''ears.  This  authority  for  long-term  dollar 
credit  was  not  utilized  until  1961,  but  transition  from  sales  for  foreign 
currencies  was  mandated  in  the  1966  legislation,  the  dollar  credit 
arrangement  now  exclusively  dominates  the  P.L.  480  sales  program. 

DEVELOPMENT  ASSISTANCE 

Responding  to  a  growing  awareness  of  the  development  needs  of 
the  poor  nations  of  the  world,  the  Agriculture  Committees  of  the 
Congress  began  to  redirect  P.L.  480  to  stress  the  humanitarian  and 
development  aspects  of  the  program. 

In  1960,  title  II,  which  at  that  time  was  limited  to  disaster  and 
emergency  food  relief,  was  extended  for  one  year  to  provide  for  the  use 
of  commodities  in  programs  wherebj^  food  might  be  used  as  payment  for 
the  poor  and  jobless  in  public  works  projects  in  developing  countries. 
This  use,  which  came  to  be  called  ''food  for  work,"  became  permanent 
authority  under  section  202  the  following  year. 

The  Private  Trade  Entity  program  (PTE)  was  established  by  an 
amendment  to  title  IV  in  1962.  Under  this  authority  the  Secretary  of 
Agriculture  is  permitted  to  enter  into  agreements  with  U.S.  or  foreign 
private  enterprise  to  finance  the  sale  of  U.S.  agricultural  comn^odities 
for  dollar  credits.  The  proceeds  accruing  from  resale  of  such  com- 
modities in  a  developing  nation  must  then  be  applied  to  a  specified 
project  to  improve  consumption  of  U.S.  farm  products  or  to  con- 
tribute   to    the    economic    development   of    the    country   concerned. 

FIGHTING  HUNGER 

The  Agriculture  Committees  made  sweeping  changes  in  1964  and 
1966  which  further  strengthened  the  development  and  humanitarian 
aspects  of  the  program. 

In  the  1964  report  of  the  Committee  on  legislation  to  extend  P.L. 
480,  the  program  was  claimed  to  be  of  ''.  .  .  incalculable  benefit  to  many 
recipient  countries  of  the  free  world  as  well  as  to  the  United  States  ..." 
in  terms  of  ''opening  .  .  .  effective  outlets  for  America's  abundance  ..." 
and  for  enabling  the  ".  .  .  United  States  to  combat  famine,  malnutri- 
tion, and  hunger  in  less  developed  countries  and  to  promote  their 
growth — a  growth  it  is  hoped,  that  eventual!}^  will  mean  enlarged 
commicrcial  export  markets  for  U.S.  agriculture  and  industry." 

In  order  to  better  address  these  objectives,  the  Congress  made  sev- 
eral changes  in  the  extension  of  1964.  The  limitations  on  the  accumula- 
tion of  currencies  generated  from  title  I  sales  which  could  be  used  for 
Cooley  loans  was  eliminated  and  the  percentage  of  foreign  currencies 
for  use  by  U.S.  agencies  abroad  was  increased  from  10  percent  to  20 
percent. 

The  Act  was  further  amended  to  provide  that  foreign  currencies  be 
convertible  into  dollars  insofar  as  those  currencies  weie  not  needed  for 
the  purposes  described  in  the  Act. 


The  1964  extending  legislation  also  amended  the  terms  of  sale  under 
title  I  by  providing  that  the  exchange  rate  used  in  sales  for  local 
currencies  shall  be  the  highest  rate  obtainable  by  any  other  nation. 

Another  amendment  provided  that  long-term  dollar  credit  sales 
under  title  IV  could  not  be  more  favorable  to  the  recipient  country 
than  the  terms  extended  for  development  loans  under  the  Foreign 
Assistance  Act. 

The  1964  legislation  placed  a  prohibition  on  the  sale  of  title  I  com- 
modities to  communist-controlled  governments,  countries  trading 
with  Cuba,  countries  which  are  involved  in  military  aggression  against 
nations  with  which  the  United  States  has  diplomatic  ties,  and  countries 
using  funds  from  the  United  States  for  purposes  which  are  against 
American  interests.  Internal  securit}^  was  added  to  the  Act  as  an  ac- 
ceptable use  of  foreign  currencies  generated  from  title  I  sales.  In 
addition,  congressional  scrutiny  over  agreements  providing  for  the 
grant  of  foreign  currencies  for  other  than  military  purposes  or  any  use 
of  loan  repayments  was  increased  by  requiring  the  review  of  all  such 
agreements  hy  the  House  and  Senate  Agriculture  Committees. 

The  1964  legislation  also  established  an  advisory  committee  to 
oversee  and  advise  the  President  on  the  status  and  use  of  foreign 
currencies  accrued  under  title  I,  composed  of  the  chairmen  and 
ranking  minority  members  of  the  House  and  Senate  Agriculture 
Committees  and  the  chief  executive  officers  of  the  Bureau  of  the 
Budget,  Agency  for  International  Development,  and  Department'  of 
Agriculture.  While  the  functions  and  membership  of  the  Committee 
were  subsequently  expanded,  this  body  has  met  infrequentl}^ 

This  legislation  established  authority  for  the  purchase  of  foreign 
currencies  accruing  under  title  I  to  be  used  to  carry  self-help  activities 
under  donation  programs. 

Finally,  the  1964  extension  also  included  permanent  authority  for 
the  Commodity  Credit  Corporation  to  finance  the  differential  between 
U.S.  and  world  shipping  rates  which  arises  as  a  result  of  the  require- 
ment that  50  percent  of  title  I  shipments  are  transported  on  U.S. 
vessels. 

A    FUNDAMENTAL   SHIFT 

The  most  comprehensive  restructuring  of  the  law  was  accomplished 
in  1966.  Congress  com.bined  title  I  foreign  currenc}^  sales  and  title  IV 
long-term  dollar  credit  sales  into  the  present  title  I. 

A  progressive  transition  away  from  sales  for  foreign  currencies  was 
required  under  these  amendments  and  a  mechanism  b}^  which  the 
United  States  could  accept  convertible  local  currencies  over  40  years 
with  a  10-year  grace  period  was  authorized  to  ease  the  transition 
requirement.  The  Act  was  also  amended  to  require  a  down  paA  ment 
of  at  least  5  percent  on  title  I  sales  whenever  practicable. 

The  reorganization  also  folded  title  III  (donations  through  non- 
profit voluntary  and  international  agencies)  into  title  II  (donations 
for  famine  relief).  The  barter  authority  remained  under  title  III. 

A  significant  addition  was  a  mandate  that  its  assistance  be  used  to 
the  maximum  extent  possible  to  complement  the  development  activi- 
ties within  the  recipient  countries.  These  amendments  required  that 
countries  receiving  assistance  under  title  I  demonstrate  an  interest  and 
an  effort  to  develop  their  agricultural  production  potential.  Twenty 


9 

percent  of  the  foreign  currencies  accumulated  under  title  I  sales  were 
required  to  be  used  for  such  ''self-help"  programs  in  these  countries. 

It  was  at  this  time  that  the  Agriculture  Committees  formally  re- 
moved the  emphasis  of  the  program  from  surplus  disposal  toward 
market  development  and  humanitarian  and  development  assistance. 

Maternal  and  child  care  activities  and  population  control  were 
added  to  the  list  of  programs  which  could  be  funded  with  foreign  cur- 
rencies grants  under  title  I.  Up  to  25  percent  of  the  U.S.  heJd  foreign 
currencies  were  specified  for  sale  to  American  tourists  in  excess  cur- 
rency countries,  and  most  of  the  foreign  currency  uses  were  made 
subject  to  the  congressional  appropriations  process. 

The  1966  extension  also  added  countries  trading  with  North  Viet- 
nam to  the  list  of  nations  ineligible  for  title  I  assistance. 

Title  I  was  amended  to  require  that  the  President  take  steps  to 
assure  that  the  United  States  obtain  a  fair  share  of  any  increased 
agricultural  purchases  of  a  participating  developing  country.  The 
title  III  barter  program  w^as  amended  to  prevent  transshipments  of 
U.S.  agricultural  commodities  obtained  under  the  authority  of  that 
title. 

The  1966  extension  reduced  the  membership  of  the  congressional 
executive  Advisory  Committee,  provided  for  four  meetings  of  the 
committee  annually,  and  specified  rotation  of  the  chairmanship. 

POPULATION   PROGRAMS 

The  1968  extension  made  several  changes.  The  Senate  Committee 
on  Agriculture  and  Forestry  amended  the  Act  to  provide  that  5 
percent  of  title  I  local  currencies  be  made  available  for  voluntary 
population  control  programs,  and  established  voluntary  population 
control  program.s  as  one  of  the  self-help  measures  to  be  considered 
before  entering  into  a  title  I  agreement. 

The  Committee  also  added  language  to  the  Act  requiring  that  at 
least  2  percent  of  the  local  currency  received  from  each  country  be 
set  aside  to  finance  international,  educational  and  cultural  exchange 
activities  and  activities  of  American  educational  institutions  under 
various  education  acts. 

The  amounts  of  foreign  currencies  needed  for  five  selected  currency 
uses  were  required  to  be  specified  under  the  title  I  sales  agreement. 
Where  currencies  are  so  used  such  amount  would  be  paid  at  the  time 
the  commodities  were  delivered  and  would  then  be  considered  as 
an  advance  payment  of  the  earliest  installments  of  such  agreements. 

Up  to  50  percent  of  the  foreign  currencies  earned  from  the  sale  of 
title  I  commodities  could  be  converted  for  sale  to  U.S.  or  participating 
country  contractors  to  pay  wages  earned  in  public  works  projects  and 
50  percent  of  the  foreign  currencies  could  be  converted  for  sale  to  U.S. 
importers  who  buy  materials  from  the  participating  country. 

The  1968  extension  authorized  the  use  of  foreign  currencies  for 
carrying  out  programs  to  control  rodents,  insects,  weeds,  and  other 
animal  and  plant  pests. 

Finally,  the  extension  tightened  the  prohibition  on  sales  to  North 
Vietnam  by  excluding  any  exporter  doing  business  directly  or  indirectly 
with  that  country  from  title  I  financing. 


10 

INTO   THE   1970'S 

Between  1968  and  1975,  P.L.  489  was  amended  infrequently. 

The  Agricultural  Act  of  1970  extended  the  authorization  for  the 
program  and  added  uses  of  foreign  currencies  by  U.S.  agencies  for 
educational  and  cultural  exchange  to  those  uses  which  may  be  sub- 
ject to  the  congressional  appropriations  process. 

The  Agriculture  and  Consumer  Protection  Act  of  1973  extended 
P.L.  480  through  1977  with  minor  amendments.  It  required  that  the 
President  assure  that  commercial  supplies  were  available  to  meet 
demands  developed  through  P.L.  480  programs.  Another  amendment 
prohibited  sales  or  donations  to  North  Vietnam  unless  specifically 
authorized  by  act  of  Congress  enacted  after  July  1,  1973. 

Amendments  to  the  Foreign  Assistance  Acts  of  1973  and  1974 
affected  the  title  I  program.  The  Foreign  Assistance  Act  of  1973 
prohibitied  the  use  of  foreign  currency  proceeds  from  loan  repayments 
to  be  used  for  common  defense  or  military  purposes.  This  effectively 
repealed  the  common  defense  currency  uses  of  P.L.  480.  The  Foreign 
Assistance  Act  of  1974  provided  that,  for  fiscal  3^ear  1975,  not  more 
than  30  percent  of  U.S.  foreign  food  assistance  be  made  available  to 
countries  other  than  those  designated  by  the  United  Nations  as 
"most  seriously  affected"  b}^  the  current  economic  crisis. 

THE    HUMANITARIAN    PHASE 

Legislative  jurisdiction  of  P.L.  480  was  modified  in  the  House  of 
Representatives  in  an  overall  reorganization  for  the  94th  Congress. 

The  Committee  on  Agriculture  retained  jurisdiction  over  the 
program's  acquisition  of  farm  commodities  and  other  domestic 
operations  in  the  United  States,  and  the  Committee  on  International 
Relations  was  given  jurisdiction  over  its  foreign  distribution  aspects. 

The  House  Committee  on  International  Relations  in  1975  initiated 
several  amendments  to  foreign  assistance  and  food  assistance  pro- 
grams; in  the  Senate,  the  bil)  was  considered  and  amended  by,  in 
turn,  the  Committee  on  Foreign  Relations  and  the  Committee  on 
Agriculture  and  Forestry. 

The  result  was  the  International  Development  and  Food  Assistance 
Act  of  1975  (P.L.  94-161),  which  amended  P.L.  480  in  several  ways, 
continuing  the  strengthening  of  the  program's  humanitarian  and 
agricultural  development  objectives. 

At  least  75  percent  of  P.L.  480  title  I  programing  is  to  be  assigned 
to  those  countries  wdth  per  capita  incom.es  of  $300  or  less  annually,  a 
criterion  which  replaced  the  1974  language  which  used  a  United 
Nations  list  of  most  seriously  affected  nations  as  the  basis  for  pro- 
graming and  directed  75  percent  of  title  I  programing  to  these  nations. 

The  new  law  also  directed  the  President  to  submit  to  the  House  and 
Senate  Committees  on  Agriculture  and  International  Affairs,  by 
November  1  of  each  year,  a  revised  global  assessment  of  food  produc- 
tion and  needs,  along  with  an  updated  program  of  food  assistance  for 
the  current  fiscal  3"ear  which  reflected  the  availability  of  food  to  meet 
the  need. 

In  addition,  it  directed  the  President  to  seek  international  agreement 
subject  to  congressional  approval,  on  a  sj'stem  of  food  reserves  to 
meet  emergency  food  shortages,  with  strong  recommendations  that 
it  safeguard  farmers  and  consumers  against  market  price  disruptions. 


11 

The  new  law  also  urges  the  President  to  maintain  a  significant 
United  States  contribution  toward  the  World  Food  Conference 
target  of  at  least  10  million  tons  of  food  assistance  annualh',  and  urges 
him  to  encourage  other  donor  countries  to  increase  and  maintain  their 
contributions. 

Other  1975  amendments  are  designed  to  encourage  self-help  in 
recipient  comitries  to  increase  farm  production,  especially  through 
small  family  agriculture,  and  improve  facilities  for  transportation, 
storage,  and  distribution  of  food,  and  to  reduce  population  growth. 

The  President  would  have  authority  to  waive  repayment  of  part  of 
title  I  loans  provided  that  the  recipient  country  used  the  proceeds  for 
population  control  or  improving  local  food  self-sufficiency,  up  to  15 
percent  of  the  total  value  of  all  title  I  agreements. 

The  Act  deleted  a  specific  provision  for  waiver  of  the  ban  on  title  I 
sales  to  countries  dealing  with  Cuba  and  North  Vietnam,  and  sub- 
stituted a  provision  for  the  President  to  waive  the  ban  if  he  finds  it  in 
the  national  interest  to  do  so — a  v/aiver  similar  to  that  in  the  Foreign 
Assistance  Act  of  1961.  The  President  would  be  required  to  report  any 
such  waiver  to  the  Congress  within  10  days. 

Also  repealed  was  a  provision  for  the  use  of  foreign  currency  pro- 
ceeds for  internal  security  purposes,  a  provision  which  had  been 
nullified,  in  effect,  by  section  40  of  the  Foreign  Assistance  Act  of  1973. 

Another  new  provision  requires  the  U.S.  to  emphasize  the  use  of 
foreign  currency  proceeds  from  title  I  sales  for  activities  which  improve 
the  lives  of  the  poorest  in  recipient  countries. 

The  amendments  expanded  the  advisory  committee  created  in 
1964  to  include  also  the  chairmen  and  ranking  minority  members  of 
the  Senate  Committee  on  Foreign  Relations  and  the  House  Com- 
mittee on  International  Relations,  and  allovv^ed  all  members  to  desig- 
nate alternates  to  represent  them  at  committee  meetings. 

DETAILED  DESCRIPTION   OF    19  75    A:MENDMENTS 

The  International  Development  and  Food  Assistance  Act  of  1975 
(P.L.  94-161)  added  five  subparagraphs  to  the  general  policy  state- 
ment of  P.L.  480  to  provide  that,  in  furnishing  food  aid  under  the 
Act,  the  President  shall : 

(1)  give  priority  consideration  in  meetmg  urgent  food  needs  abroad 
to  the  requirements  of  those  countries  most  seriously  affected  by  food 
shortages,  and  which  are  unable  to  meet  those  requirements  through 
normal  commercial  purchases ; 

(2)  continue  to  urge  other  donor  countries  to  increase  their  partici- 
pation in  efforts  to  address  food  needs  of  the  developing  world; 

(3)  relate  U.S.  assistance  to  self-help  by  the  aid-receiving  countries 
toward  increasing  their  own  agricultural  production  as  well  as  im- 
proving their  facilities  for  transportation,  storage,  and  distribution 
of  food  commodities; 

(4)  assure  that  special  consideration  in  the  allocation  of  commodities 
or  concessional  financing  under  P.L.  480  is  given  to  the  potential  for 
expanding  export  markets  for  U.S.  agricultural  commodities;  and 

(5)  give  appropriate  recognition  to  and  support  of  a  strong  American 
farm  economy  in  providing  for  the  food  security  of  consumers  in  the 
United  States  and  throughout  the  world. 

67-053—76 3 


12 

Referring  to  the  World  Food  Conference  recommendation  that 
donor  countries  provide  a  total  of  at  least  10  million  tons  of  food  as- 
sistance annually,  a  new  section  3  urges  the  President  to  maintain  a 
significant  U.S.  contribution  to  this  target  and  to  encourage  other 
countries  to  maintain  and  increase  their  contributions  as  well. 

Section  103  of  P.L.  480  was  amended  in  several  respects. 

Subsection  103(a)  was  amended  to  require  the  President,  in  exer- 
cising title  I  authority,  to  take  into  account  self-help  efforts  aimed  at 
increasing  agricultural  production,  especiall}^  through  small  family 
farm  agriculture,  improving  their  facilities  for  transportation,  storage, 
and  distribution  of  food  commodities,  and  reducing  population  growth 
rates. 

Subsection  103(b)  was  amended  to  permit  foreign  currency  pro- 
ceeds from  sales  under  title  I  which  are  used  for  the  specified  pur- 
poses of  section  106(b)(2)  to  be  considered  as  advance  payment 
of  title  I  credits  in  accordance  with  agreements  between  the  United 
States  and  the  foreign  government. 

The  second  proviso  of  subsection  103(d)  was  deleted.  This  subsec- 
tion provided  a  waiver  under  specified  circumstances  of  the  prohibi- 
tion on  title  I  sales  to  countries  which  sell  or  furnish  goods  to,  or 
permit  their  ships  to  carry  goods  to  or  from,  Cuba  or  North  Vietnam. 
In  lieu  of  this  proviso  there  was  inserted  a  general  national  interest 
waiver  authority  of  the  same  type  now  applicable  to  assistance  under 
the  Foreign  Assistance  Act  of  1961.  The  President  is  required  to  re- 
port the  determination  of  any  such  waiver  to  the  Congress  within  10 
days  of  such  action. 

Section  104  was  amended  by  repealing  subsection  (c),  which  pro- 
vides for  the  use  of  local  currency  proceeds  to  procure  equipment, 
materials,  facilities,  and  services  for  the  common  defense  including 
internal  security.  The  subsection  already  had  been  nullified,  in  effect, 
by  section  40  of  the  Foreign  Assistance  Act  of  1973. 

Section  106(b)  of  P.L.  480  was  amended  by  adding  a  requirement 
that  the  United  States,  in  negotiating  agreements  with  countries 
receiving  title  I  agricultural  commodities,  emphasize  the  use  of  foreign 
currency  proceeds,  from  the  sale  of  those  commodities,  for  activities 
which  directly  improve  the  lives  of  the  poorest  of  their  people  and 
their  capacity  to  participate  in  the  development  of  their  countries. 

Section  106(b)  was  also  amended  to  authorize  the  Executive  Branch 
to  conclude  agreements  under  which  the  use  of  local  currency  proceeds 
for  agreed  development  purposes  may,  to  that  extent,  be  deemed  pay- 
ment of  the  dollar  obligation  to  the  U.S.  Government.  This  amend- 
ment directs  that,  in  determining  the  use  of  proceeds  under  this 
arrangement,  greatest  emphasis  shall  be  placed  on  carrying  out  pro- 
grams of  agricultural  development,  rural  development,  nutrition  and 
the  activities  described  under  section  406(a)(1)  of  P.L.  480  in  those 
countries  which  are  undertaking  self-help  measures  (enumerated  in 
section  109  of  P.L.  480),  consistent  with  the  policy  objectives  of  P.L. 
480  and  sections  103  and  104  of  the  Foreign  Assistance  Act  of  1961. 

For  any  fiscal  year,  payments  under  this  provision  may  not  exceed 
15  percent  of  the  total  value  of  all  title  I  agreements.  This  new  author- 
ity is  prospective  only  and  is  not  to  be  used  to  modify  existing 
agreements. 

Uses  of  local  currencies  under  this  provision  must  be  described  in 
reports  required  by  section  408  of  P.L.  480  and  section  657  of  the 
Foreign  Assistance  Act  of  1961. 


13 

Section  109(a)  of  P.L.  480  was  amended  to  add  a  requirement 
that,  in  considering  self-help  measures  by  developing  countries  before 
entering  into  title  I  sales  agreements  with  these  countries,  the  Presi- 
dent shall  take  into  particular  account  the  extent  to  which  such 
measures  are  being  carried  out  so  as  to  contribute  directly  to  develop- 
ment progress  in  poor  rural  areas  and  to  enable  the  poor  to  participate 
actively  in  increased  production  through  small  farm  agriculture. 

Another  new  section  was  added  to  title  II  of  P.L.  480  providing 
that,  except  in  the  case  of  famine  or  other  urgent  or  extraordinary 
relief  requirements,  no  assistance  shall  be  provided  under  title  II  of 
P.L.  480  pursuant  to  agreements  providing  for  the  generation  of 
foreign  currency  proceeds  unless  (1)  the  recipient  country  is  under- 
taking self-help  measures  in  accordance  with  section  109  of  P.L.  480, 
(2)  the  specific  uses  to  which  the  foreign  currencies  are  to  be  put  are 
set  forth  in  a  written  agreement  between  the  United  States  and  the 
recipient  country,  and  (3)  such  agreements  provide  that  the  curren- 
cies will  be  used  for  the  purposes  specified  in  section  103  of  the  Foreign 
Assistance  Act  of  1961,  as  amended. 

Information  on  such  uses  must  be  included  in  the  reports  required 
by  section  408  of  P.L.  480  and  section  657  of  the  Foreign  Assistance 
Act. 

Section  407  of  P.L.  480  was  amended  to  allow  members  of  the  P.L. 
480  Advisory  Committee  to  designate  persons  to  represent  them  on 
the  Committee. 

The  Advisory  Committee,  as  presently  established  under  section 
407  of  P.L.  480,  is  composed  of  the  Secretary  of  State,  the  Secretary 
of  the  Treasury,  the  Secretary  of  Agriculture,  the  Director  of  the 
Office  of  Management  and  Budget,  the  Administrator  of  the  Agency 
for  International  Development,  the  Chairman  and  the  ranking  minor- 
ity member  of  the  House  Committee  on  Agriculture  and  the  House 
Committee  on  International  Relations,  and  the  Chairman  and  rank- 
ing minority  member  of  both  the  Senate  Committee  on  Agriculture 
and  Forestry  and  the  Senate  Committee  on  Foreign  Relations. 

Section  408  of  P.L.  480  was  amended  by  changing  the  annual 
report  required  by  this  section  to  a  ''fiscal  year"  rather  than  "calendar 
year"  basis. 

Two  new  subsections,  (b)  and  (c)  were  also  added  to  section  408. 

Subsection  408(b)  requires  the  President,  in  his  annual  report  to 
designated  committees  of  the  Congress  of  planned  programing  of  food 
assistance  for  each  fiscal  year,  to  include  a  global  assessment  of  food 
production  and  needs;  self-help  steps  being  taken  under  P.L.  480, 
section  109(a) ;  steps  being  taken  to  encourage  other  donors  to  increase 
their  food  assistance  efforts;  and  the  relationship  between  P.L.  480 
food  assistance  and  other  assistance  provided  to  each  country  b}'  the 
United  States  and  other  donors. 

Subsection  408(c)  requires  the  President  to  submit  to  the  House 
Committee  on  Agriculture,  the  House  Committee  on  International 
Relations,  the  Senate  Committee  on  Agriculture  and  Forestry  and  the 
Senate  Committee  on  Foreign  Relations  not  later  than  November  1 
of  each  year  a  revised  global  assessment  of  food  production  and  needs, 
and  revised  planned  programing  of  food  assistance  for  the  current 
fiscal  year,  reflecting  to  the  maximum  feasible  extent  the  actual 
availabilities  of  food  commodities  for  assistance. 


14 

A  new  section  412  in  P.L.  480  authorizes  and  encourages  the 
President  to  seek  international  agreement,  subject  to  congressional 
approval,  for  a  system  of  food  reserves  to  meet  food  shortage  emer- 
gencies and  to  provide  insurance  against  unexpected  food  production 
shortages,  v,dth  costs  of  such  a  system  to  be  equitably  shared  among 
nations,  and  fhm  safeguards  to  be  given  to  farmers  and  consumers 
against  market  price  disruption  therefrom. 

A  new  section  213  calls  upon  the  President  to  strengthen  the 
efforts  of  the  United  States  to  carry  out  the  recommendations  of  the 
World  Food  Conference  and  requires  the  President  to  submit  a 
detailed  report  to  the  Congress  not  later  than  November  1,  1976, 
describing  the  steps  he  has  taken  to  carry  out  the  recommendations 
of  the  Conference. 

Section  406  of  P.L.  480  was  amended  to  transfer  the  authority  to 
establish  and  administer  a  program  of  farmer-to-farmer  assistance 
from  the  Department  of  Agriculture  to  the  President  and  provides 
that  the  program  be  coordinated  with  other  foreign  assistance  activi- 
ties of  the  United  States. 

EXTENSION  IN   1977 

The  current  authorization  for  activities  conducted  under  P.L.  480 
wni  expire  on  December  31,  1977.  The  Committee  on  Agriculture  and 
Forestry  of  the  Senate  and  the  appropriate  Committees  of  the  House 
of  Representatives  expect  to  take  up  ;legislation  in  1977  to  extend 
the  authorization. 


AGRICULTURAL  TRADE  DEVELOPMENT  AND 

ASSISTANCE  ACT  OF  1954,  AS  AMENDED 

(7  U.S.C.  1691-1692. 1701-1709, 1721-1725, 1731-1736d) 

Public  Law  480 — 83d  Congress 

AN  ACT  To  increase  the  consumption  of  United  States  agricultural  commodities 
in  foreign  countries,  to  improve  the  foreign  relations  of  the  United  States,  and 
for  other  purposes 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  United 
States  of  America  in  Congress  assembled,  That  this  Act  may  be  cited  as 
the  '^Agricultural  Trade  Development  and  Assistance  Act  of  1954'\ 

Ssc.  2.  The  Congress  hereby  declares  it  to  be  the  policy  of  the 
United  States  to  expand  international  trade;  to  develop  and  expand 
export  markets  for  United  States  agricultural  commodities;  to  use  the 
abundant  agricultural  productivity  of  the  United  States  to  combat 
hunger  and  malnutrition  and  to  encourage  economic  development  in 
the  developing  countries,  with  particular  emphasis  on  assistance  to 
those  countries  that  are  determined  to  improve  their  ovrn  agricultural 
production;  and  to  promote  in  other  ways  the  foreign  policy  of  the 
United  States.  (7  U.S.C.  1691.) 

In  furnishing  food  aid  under  this  Act,  the  President  shall — 

(1)  give  priority  consideration,  in  helping  to  meet  urgent  food 
needs  abroad,  to  making  available  the  maximum  feasible  volume 
of  food  commodities  (with  appropriate  regard  to  domestic  price 
and  supply  situations)  required  by  those  countries  most  seriously 
affected  by  food  shortages  and  by  inability  to  meet  immediate 
food  requirements  on  a  normal  commercial  basis; 

(2)  continue  to  urge  all  traditional  and  potential  new  donors 
of  food,  fertilizer,  or  the  means  of  financing  these  commodities 
to  increase  their  participation  in  efforts  to  address  the  emergency 
and  longer  term  food  needs  of  the  developing  world; 

(3)  relate  United  States  assistance  to  efforts  by  aid-receiving 
countries  to  increase  their  ovvTI  agricultural  production,  with 
emphasis  on  development  of  small,  family  farm  agriculture,  and 
improve  their  facilities  for  transportation,  storage,  and  distribu- 
tion of  food  commodities; 

(4)  give  special  consideration  to  the  potential  for  expanding 
markets  for  America's  agricultural  abundance  abroad  in  the  allo- 
cation of  commodities  or  concessional  financing;  and 

(5)  give  appropriate  recognition  to  and  support  of  a  strong 
and  viable  American  farm  economy  in  providing  for  the  food 
security  of  consumers  in  the  United  States  and  throughout  the 
world. 

Sec.  3.  Pursuant  to  the  World  Food  Conference  recommendation 
that  donor  countries  provide  a  total  of  at  least  ten  million  tons  of 
food  assistance  to  needy  nations  annually,  the  President  is  urged  to 

(15) 


16 

maintain  a  significant  United  States  contribution  to  this  goal  and 
to  encourage  other  countries  to  maintain  and  increase  their  contribu- 
tions as  well. 

Title  I 

Sec.  101.  In  order  to  carry  out  the  policies  and  accomplish  the 
objectives  set  forth  in  section  2  of  this  Act,  the  President  is  authorized 
to  negotiate  and  carry  out  agreements  with  friendly  countries  to 
provide  for  the  sale  of  agricultural  commodities  for  dollars  on  credit 
terms  or  for  foreign  currencies.  (7  U.S.C.  1701.)  Regulations:  7  CFR 
Part  17. 

Sec.  102.  For  the  purpose  of  carrying  out  agreements  concluded 
under  this  Act  the  Commodity  Credit  Corporation  is  authorized  to 
finance  the  sale  and  exportation  of  agricultural  commodities  whether 
from  private  stocks  or  from  stocks  of  the  Commodity  Credit  Cor- 
poration: Provided,  That  the  Commodity  Credit  Corporation  shall 
not  finance  the  sale  and  export  of  agricultural  commodities  under  this 
Act  for  any  exporter  which  is  engaging  in,  or  in  the  six  months  im- 
mediately preceding  the  apphcation  for  such  financing  has  engaged  in, 
any  sales,  trade,  or  commerce  with  North  Vietnam,  or  with  any 
resident  thereof,  or  which  owtis  or  controls  any  company  which  is 
engaging  in,  or  in  such  period  has  engaged  in,  any  such  sales,  trade, 
or  commerce,  or  which  is  owTied  or  controlled  by  any  company  or 
person  which  is  engaging  in,  or  which  in  such  period  has  engaged  in, 
any  such  sales,  trade,  or  commerce  neither  directly  or  through  any 
branch,  subsidiary,  affiliate,  or  associated  company:  Provided  further, 
That  such  application  for  financing  must  be  accompanied  by  a  state- 
ment in  wliich  are  Usted  by  name,  address,  and  chief  executive  officers 
all  branches,  afiiHates,  subsidiaries  and  associated  companies,  foreign 
and  domestic,  in  which  the  appUcant  has  a  controlling  interest  and 
similar  information  for  all  companies  which  either  directly  or  tiirough 
subsidiaries  or  otherwise  have  a  controlhng  interest  in  the  appHcant 
company.  (7  U.S.C.  1702.) 

Sec.  103.  In  exercising  the  authorities  conferred  upon  him  by  this 
title,  the  President  shall — 

(a)  Take  into  account  efforts  of  friendly  countries  to  help  them- 
selves toward  a  greater  degree  of  self-rehance,  including  efforts  to 
increase  their  own  agricultural  production,  especially  through  small, 
family  farm  agriculture,  to  improve  their  facilities  for  transportation, 
storage,  and  distribution  of  food  commodities,  and  to  reduce  their 
rate  of  population  growth; 

(b)  Take  steps  to  assure  a  progressive  transition  from  sales  for 
foreign  currencies  to  sales  for  dollars  (or  to  the  extent  that  transition 
to  sales  for  dollars  under  the  terms  applicable  to  such  sales  is  not 
possible,  transition  to  sales  for  foreign  currencies  on  credit  terms  no 
less  favorable  to  the  United  States  than  those  for  development  loans 
made  under  section  201  of  the  Foreign  Assistance  Act  of  1961,  as 
amended,  and  on  terms  which  permit  conversion  to  dollars  at  the  ex- 
change rate  applicable  to  the  sales  agreement)  at  a  rate  whereby  the 
transition  can  be  completed  by  December  31,  1971:  Provided,  That, 
except  where  he  determines  that  it  would  be  inconsistent  with  the 
objectives  of  the  Act,  the  President  shall  determine  the  amount  of 
foreign  currencies  needed  for  the  uses  specified  in  subsection  (a),  (b). 


17 

(c),  (e),  and  (li)  of  section  104,  and  in  section  106(b)(2)  and  the  agree- 
ments for  such  credit  sales  shall  provide  for  payment  of  such  amounts 
in  dollars  or  in  foreign  currencies  upon  delivery  of  the  agricultural 
commodities.  Such  payment  may  be  considered  as  an  advance  payment 
of  the  earliest  installments. 

(c)  Take  reasonable  precautions  to  safeguard  usual  marketings  of  the 
United  States  and  to  assure  that  sales  under  this  title  will  not  unduly 
disrupt  world  prices  of  agricultural  commodities  or  normal  patterns  of 
commercial  trade  with  friendly  countries ; 

(d)  Make  sales  agreements  only  with  those  countries  which  he  deter- 
mines to  be  friendly  to  the  United  States:  Provided,  That  the  President 
shall  periodically  review  the  status  of  those  countries  which  are 
eligible  under  this  subsection  and  report  the  results  of  such  review  to 
the  Congress.  As  used  in  this  Act,  ''friendly  country"  shall  not  include 

(1)  any  country  or  area  dominated  or  controlled  by  a  foreign  govern- 
ment or  organization  controlling  a  world  Communist  movement,  or 

(2)  for  the  purpose  only  of  sales  of  agricultural  commodities  for 
foreign  currencies  under  title  I  of  this  Act,  any  country  or  area  domi- 
nated by  a  Communist  government,  or  (3)  for  the  purpose  only  of 
sales  of  agricultural  commodities  under  title  I  of  this  Act,  any  nation 
which  sells  or  furnishes  or  permits  ships  or  aircraft  under  its  registry 
to  transport  to  or  from  Cuba  or  North  Vietnam  (excluding  United 
States  installations  in  Cuba)  any  equipment,  materials,  or  com- 
modities so  long  as  they  are  governed  by  a  Communist  regime: 
Provided,  That  this  exclusion  from  the  definition  of  "friendly  country" 
may  be  waived  by  the  President  if  he  determines  that  such  waiver 
is  in  the  national  interest  and  reports  such  determination  to  the 
Congress  within  10  days  of  the  date  of  such  determination,  or  (4) 
for  the  purposes  only  of  sales  under  title  I  of  this  Act  the  United 
Arab  Republic,  unless  the  President  determines  that  such  sale  is  in  the 
national  interest  of  the  United  States.  No  sales  to  the  United  Arab 
Republic  shall  be  based  upon  the  requirements  of  that  nation  for 
more  than  one  fiscal  year.  The  President  shall  keep  the  President  of 
the  Senate  and  the  Speaker  of  the  House  of  Representatives  fully 
and  currently  informed  with  respect  to  sales  made  to  the  United 
Arab  Republic  under  title  I  of  this  Act.  Notwithstanding  any  other 
Act,  the  President  may  enter  into  agreements  for  the  sale  of  agricul- 
tural commodities  for  dollars  on  credit  terms  under  title  I  of  this 
Act  with  countries  which  fall  mthin  the  definition  of  "friendly  coun- 
try" for  the  purpose  of  such  sales  and  no  sales  under  this  Act  shall 
be  made  with  any  country  if  the  President  finds  such  country  is  (a) 
an  aggressor,  in  a  military  sense,  against  any  country  having  diplo- 
matic relations  with  the  United  States,  or  (b)  using  funds,  of  any 
sort,  from  the  United  States  for  purposes  mimical  to  the  foreign 
policies  of  the  United  States; 

(e)  Take  appropriate  steps  to  assure  that  private  trade  channels  are 
used  to  the  maximum  extent  practicable  both  with  respect  to  sales 
from  privately  o\^Tied  stocks  and  with  respect  to  sales  from  stocks 
owned  by  the  Commodity  Credit  Corporation  and  that  small  business 
has  adequate  and  fair  opportunity  to  participate  in  sales  made  under 
the  authority  of  this  Act; 

(f)  Give  special  consideration  to  the  development  and  expansion  of 
foreign  markets  for   United  States   agricultural   commodities,   with 


18 

appropriate  emphasis  on  more  adequate  storage,  handling,  and  food 
distribution  facihties  as  well  as  long-term  development  of  new  and 
expanding  markets  by  encouraging  economic  growth; 

(g)  Obtain  commitments  from  purchasing  countries  that  will  prevent 
resale  or  transshipment  to  other  countries,  or  use  for  other  than 
domestic  purposes,  of  agricultural  commodities  purchased  under  this 
title,  without  specific  approval  of  the  President; 

(h)  Obtain  rates  of  exchange  applicable  to  the  sale  of  commodities 
under  such  agreements  which  are  not  less  favorable  than  the  highest  of 
exchange  rates  legally  obtainable  in  the  respective  countries  and  which 
are  not  less  favorable  than  the  highest  of  exchange  rates  obtainable  by 
any  other  nation; 

(i)  Promote  progress  toward  assurance  of  an  adequate  food  suppty  by 
encouraging  countries  with  which  agreements  are  made  to  give  higher 
emphasis  to  the  production  of  food  crops  than  to  the  production  of  such 
nonfood  crops  as  are  in  world  surplus ; 

(j)  Exercise  the  authority  contained  in  title  I  of  this  Act  to  assist 
friendly  countries  to  be  independent  of  domination  of  control  by  any 
world  Communist  movement.  Nothing  in  this  Act  shall  be  construed  as 
authorizing  sales  agreements  under  title  I  with  any  government  or 
organization  controlling  a  world  Communist  m^ovement  or  with  an^^ 
country  with  which  the  United  States  does  not  have  diplomatic 
relations ; 

(k)  Whenever  practicable  require  upon  deliver}^  that  not  less  than 
5  per  centum  of  the  purchase  price  of  any  agricultural  commodities 
sold  under  title  I  of  this  Act  be  payable  in  dollars  or  in  the  types  or 
kinds  of  currencies  which  can  be  converted  into  dollars; 

(1)  Obtain  commitments  from  friendl}^  purchasing  countries  that  will 
insure,  insofar  as  practicable,  that  food  commodities  sold  for  foreign 
currencies  under  title  I  of  this  Act  shall  be  marked  or  identified  at  point 
of  distribution  or  sale  as  being  provided  on  a  concessional  basis  to  the 
recipient  government  through  the  generosit}^  of  the  people  of  the 
United  States  of  America,  and  obtain  commitments  frcm.  purchasing 
countries  to  publicize  widely  to  then-  people,  by  public  media  and  other 
means,  that  the  commodities  are  bemg  provided  on  a  concessional  basis 
through  the  friendship  of  the  American  people  as  food  for  peace; 

(m)  Require  foreign  currencies  to  be  convertible  to  dollars  to  the 
extent  consistent  with  the  effectuation  of  the  purposes  of  this  Act,  but 
in  any  event  to  the  extent  necessary  to  (1)  permit  that  portion  of  such 
currencies  made  available  for  payment  of  United  States  obligations  to 
be  used  to  meet  obligations  or  charges  payable  by  the  United  States  or 
any  of  its  agencies  to  the  government  of  the  importing  country  or  any 
of  its  agencies,  and  (2)  in  the  case  of  excess  currency  countries,  assure 
convertibility  by  sale  to  American  tourists,  or  otherwise,  of  such  addi- 
tional amount  (up  to  twent^'-five  per  centum  of  the  foreign  currencies 
received  pursuant  to  each  agreement  entered  into  after  the  effective 
date  of  the  Food  for  Peace  Act  of  1966)  as  may  be  necessary  to  cover  all 
normal  expenditures  of  American  tourists  in  the  importing  country; 

(n)  Take  maximum  precautions  to  assure  that  sales  for  dollars  on 
credit  terms  under  this  Act  shall  not  displace  an}^  sales  of  United  States 
agricultural  commodities  which  would  otherwise  be  made  for  cash 
dollars; 


19 

(o)  Take  steps  to  assure  that  the  United  States  obtains  a  fair  share 
of  any  increase  in  commercial  purchases  of  agricultural  commodities  by 
the  purchasing  country  and  that  commercial  supplies  are  available 
to  meet  demands  developed  through  programs  carried  out  under  this 
Act; 

(p)  Assure  convertibility  at  such  uniformly  applied  exchange  rates 
as  shall  be  agreed  upon  of  up  to  50  per  centum  of  the  foreign  currencies 
received  pursuant  to  each  agreement  by  sale  to  United  States  or  pur- 
chasing country  contractors  for  payment  of  wages  earned  in  the  de- 
velopment and  consummation  of  works  of  public  improvement  in  the 
purchasing  countrs^;  and 

(q)  Assure  convertibility  of  up  to  50  per  centum  of  the  foreign  cur- 
rencies received  pursuant  to  each  agreement  b}'  sale  of  United  States 
importers  for  the  procurement  of  materials  or  commodities  in  the  pur- 
chasing country.  (7  U.S.C.  170o.) 

Sec.  104.  Notwithstanding  any  other  provision  of  law,  the  President 
may  use  or  enter  into  agreements  with  foreign  countries  or  interna- 
tional organizations  to  use  the  foreign  currencies,  including  principal 
and  interest  from  loan  repa^'ments,  which  accrue  in  connection  with 
sales  for  foreign  currencies  under  this  title  for  one  or  more  of  the  fol- 
lowing purposes: 

(a)  For  paATnent  of  United  States  obligations  (including  obligations 
entered  into  pursuant  to  other  legislation) ; 

(b)  For  carrving  out  proo:rams  of  United  States  Government  agencies 
to— 

(1)  help  develop  new  markets  for  United  States  agricultural 
commodities  on  a  mutually  benefiting  basis.  From  sale  proceeds 
and  loan  repayments  under  this  title  not  less  than  the  equivalent 
of  5  per  centum  of  the  total  sales  made  each  year  under  this  title 
shall  be  set  aside  in  the  amounts  and  kinds  of  foreign  currencies 
>pecified  by  the  Secretary  of  Agriculture  and  made  available 
in  advance  for  use  as  provided  by  this  paragraph  over  such  period 
of  years  as  the  Secretary  of  Agriculture  determines  will  most 
effectively  carrA^  out  the  purpose  of  tliis  paragraph:  Pronided, 
That  the  Secretary  of  Agriculture  may  release  such  amounts  of 
the  foreign  currencies  so  set  aside  as  he  determines  caimot  be 
effectively  used  for  agricultural  market  development  purposes 
under  this  section,  except  that  no  release  shall  be  made  until 
the  expiration  of  thirty  days  follo\\dng  the  date  on  which  notice 
of  such  proposed  release  is  transmitted  by  the  President  to  the 
Senate  Committee  on  Agriculture  and  Forestry  and  the  Senate 
Committee  on  Foreign  Relations  and  to  the  House  Committee 
on  Agriculture  and  the  House  Committee  on  International 
Relations,  if  transmitted  while  Congress  is  in  session,  or  sixty 
days  following  the  date  of  transmittal  if  transmitted  wliile  Con- 
gress is  not  in  session.  Provision  shall  be  made  in  sale  and  loan 
agreements  for  the  convertibility  of  such  amount  of  the  proceeds 
thereof  (not  less  than  2  per  centum)  as  the  Secretaiy  of  Agricul- 
ture determines  to  be  needed  to  carry  out  the  purpose  of  this 
paragraph  in  those  countries  which  are  or  offer  reasonable 
potential  of  becoming  dollar  markets  for  United  States  agricul- 
tural commodities.  Such  sums  shall  be  converted  into  the  types 


67-053 — 76- 


20 

and  kinds  of  foreign  currencies  as  the  Secretary  deems  necessary 
to  carr}'  out  the  provisions  of  this  paragraph  and  such  sums  shall 
be  deposited  to  a  special  Treasury  account  and  shall  not  be  made 
available  or  expended  except  for  carrying  out  the  provisions  of 
this  paragraph.  Notwithstanding  any  other  provision  of  law, 
if  sufficient  foreign  currencies  for  carr^ang  out  the  purpose  of 
this  paragraph  in  such  countries  are  not  otherwise  available, 
the  Secretar}^  of  Agriculture  is  authorized  and  directed  to  enter 
into  agreements  with  such  countries  for  the  same  of  agricultural 
commodities  in  such  amounts  as  the  Secretary  of  Agriculture 
determines  to  be  adequate  and  for  the  use  of  the  proceeds  to 
cany  out  the  purpose  of  this  paragraph.  In  carr^'ing  out  agricul- 
tural market  development  activities,  nonprofit  agricultural 
trade  organizations  shall  be  utilized  to  the  maximum  extent 
practicable.  The  purpose  of  this  paragraph  shall  include  such 
representation  of  agricultural  industries  as  may  be  required 
during  the  course  of  discussions  on  trade  programs  relating  either 
to  individual  commodities  or  groups  of  commodities; 

(2)  finance  with  not  less  than  2  per  centum  of  the  total  sales 
proceeds  received  each  year  in  each  country  activities  to  assist 
international  educational  and  cultural  exchange  and  to  provide 
for  the  strengthening  of  the  resources  of  American  schools, 
colleges,  universities,  and  other  public  and  nonprofit  private 
educational  agencies  for  international  studies  and  research  under 
the  programs  authorized  by  title  VI  of  the  National  Defense 
Education  Act,  the  Mutual  Educational  and  Cultural  Exchange 
Act  of  1961,  the  International  Education  Act  of  1966,  the  Higher 
Education  Act  of  1965,  the  Elementary  and  Secondary  Educa- 
tion Act  of  1965,  the  National  Foundation  on  the  Arts  and  the 
Humanities  Act  of  1965,  and  the  Public  Broadcasting  Act  of  1967; 

(3)  collect,  collate,  translate,  abstract,  and  disseminate  scientific 
and  technological  information  and  conduct  research  and  support 
scientific  activities  overseas  including  programs  and  projects  of 
scientific  cooperation  between  the  United  States  and  other 
countries  such  as  coordinated  research  against  diseases  common 
to  all  of  mankind  or  unique  to  individual  regions  of  the  globe, 
and  promote  and  support  programs  of  medical  and  scientific 
research,  cultural  and  educational  development,  family  planning, 
health,  nutrition,  and  sanitation; 

(4)  acquire  by  purchase,  lease,  rental,  or  otherwise,  sites  and 
buildings  and  grounds  abroad,  for  United  States  Government  use, 
including  offices,  residence  quarters,  community  and  other 
facilities,  and  construct,  repair,  alter,  and  furnish  such  buildings 
and  facilities; 

(5)  finance  under  the  direction  of  the  Librarian  of  Congress,  in 
consultation  with  the  National  Science  Foundation  and  other 
interested  agencies,  (A)  programs  outside  the  United  States  for 
the  anal^^sis  and  evaluation  of  foreign  books,  periodicals,  and 
other  materials  to  determine  whether  they  would  provide  in- 
formation of  technical  or  scientific  significance  in  the  United 
States  and  whether  such  books,  periodicals,  and  other  materials 
are  of  cultural  or  educational  significance,  (B)  the  registr}^, 
indexing,  binding,  reproduction,  cataloging,  abstracting,  translat- 


21 

ing,  and  dissemination  of  books,  periodicals,  and  related  materials 
determined  to  have  such  significance;  and  (c)  the  acquisition 
of  such  books,  periodicals,  and  other  materials  and  the  deposit 
thereof  in  libraries  and  research  centers  in  the  United  States 
soecializing  in  the  areas  to  which  the}^  relate. 

(c)  [Deleted  on  Decemb-r  20,  1975,  by  Public  Law  94-161.] 

(d)  For  assistance  to  meet  emergenc}^  or  extraordinary  relief  require- 
ments other  than  requirements  for  food  commodities:  Provided,  That 
not  more  than  a  total  amount  equivalent  to  $5,000,000  ma};  be  made 
available  for  this  purpose  during  any  fiscal  year. 

(e)  For  use  to  the  maximum  extent  under  the  procedures  established 
by  such  agency  as  the  President  shall  designate  for  loans  to  United 
States  business  firms  (including  cooperatives)  and  branches,  sub- 
sidiaries, or  affiliates  of  such  firms  for  business  development  and  trade 
expansion  in  such  countries,  including  loans  for  private  home  con- 
struction, and  for  loans  to  domestic  or  foreign  firms  (including 
cooperatives)  for  the  establishment  of  facilities  for  aiding  in  the  utili- 
zation, and  distribution,  or  othermse  increasing  the  consumption 
of,  and  markets  for,  United  States  agricultural  products:  Provided, 
however,  That  no  such  loans  shall  be  made  for  the  manufacture  of 
any  products  intended  to  be  exported  to  the  United  States  in  com- 
petition mth  products  produced  in  the  United  States  and  due  con- 
sideration shall  be  given  to  the  continued  expansion  of  markets  for 
United  States  agricultural  commodities  or  the  products  thereof. 
Foreign  currencies  may  be   accepted  in  repayment  of  such  loans; 

(f)  To  promote  multilateral  trade  and  agricultural  and  other  eco- 
nomic development,  under  procedures,  established  by  the  President, 
by  loans  or  by  use  in  any  other  manner  which  the  President  may 
determine  to  be  in  the  national  interest  of  the  United  States,  par- 
ticularly to  assist  programs  of  recipient  countries  designed  to  promote, 
increase,  or  improve  food  production,  processing,  distribution,  or 
marketing  in  food-deficit  countries  friendl}^  to  the  United  States, 
for  which  purpose  the  President  may  utilize  to  the  extent  practicable 
the  services  of  nonprofit  voluntary  agencies  registered  with  and 
approved  by  the  Advisory  Committee  on  Voluntary  Foreign  Aid: 
Provided,  That  no  such  funds  may  be  utilized  to  promote  religious 
activities ; 

(g)  For  the  purchase  of  goods  or  services  for  other  friendly  countries; 

(h)  For  financing,  at  the  request  of  such  country,  programs  em- 
phasizing maternal  welfare,  child  health  and  nutrition,  and  activities, 
where  participation  is  voluntary,  related  to  the  problems  of  population 
growth,  under  procedures  established  by  the  President  through  any 
agency  of  the  tJnited  States,  or  through  any  local  agency  which  he 
determines  is  qualified  to  administer  such  activities.  Not  less  than  5 
per  centum  of  the  total  sales  proceeds  received  each  year  shall,  if 
requested  by  the  foreign  country,  be  used  for  voluntar}^  programs  to 
control  population  growth; 

(i)  For  paying,  to  the  maximum  extent  practicable,  the  costs 
outside  the  United  States  of  carrying  out  the  program  authorized 
in  section  406  of  this  Act; 

(j)  For  sale  for  dollars  to  United  States  citizens  and  nonprofit 
organizations  for  travel  or  other  purposes  of  currencies  determined  to 
be  in  excess  of  the  needs  of  departments  and  agencies  of  the  United 


22 

States  for  such  currencies.  The  United  States  dollars  received  from 
the  sale  of  such  foreign  currencies  shall  be  deposited  to  the  account 
of  Commodity  Credit  Corporation;  and 

(k)  for  pa}dng,  to  the  maximum  extent  practicable,  the  costs  of 
carr3dng  out  programs  for  the  control  of  rodents,  insects,  weeds,  and 
other  animal  or  plant  pests;  Provided,  That — 

(1)  Section  1415  of  the  Supplemental  Appropriation  Act,  1953, 
shall  apply  to  currencies  used  for  the  purposes  specified  in  sub- 
sections (a)  and  (b),  and  in  the  case  of  currencies  to  be  used  for 
the  purposes  specified  in  paragraph  (2)  of  subsection  (b)  the 
Appropriation  Act  ma}'  specifically  authorize  the  use  of  such 
currencies  and  shall  not  require  the  appropriation  of  dollars  for 
the  purchase  of  such  currencies; 

(2)  Section  1415  of  the  Supplem.ental  Appropriations  Act, 
1953,  shall  apph'  to  all  foreign  currencies  used  for  grants  under 
subsections  (f)  and  (g),  to  not  less  than  10  per  centum  of  the  for- 
eign currencies  which  accrue  pursuant  to  agreements  entered 
into  on  or  before  December  31,  1964,  and  to  not  less  than  20 
per  centum  in  the  aggregate  of  the  foreign  currencies  which 
accrue  pursuant  to  agreements  entered  into  thereafter:  Provided, 
however.  That  the  President  is  authorized  to  waive  such  applica- 
bility of  section  1415  in  any  case  where  he  determines  that  it 
vrouid  be  inappropriate  or  inconsistent  wdth  the  purposes  of 
this  title, 

(3)  No  agreement  or  proposal  to  grant  any  foreign  currencies 
(except  as  provided  in  subsection  (c)  of  this  section),  or  to  use 
(except  pursuant  to  appropriation  Act)  an}^  principal  or  interest 
from  loan  repayments  under  this  section  shall  be  entered  into  or 
carried  out  until  the  expiration  of  thirty  da3's  follovring  the  date 
on  which  such  agreement  or  proposal  is  transmitted  by  the 
President  to  the  Senate  Committee  on  Agriculture  and  Forestr}^ 
and  the  Senate  Committee  on  Foreign  Eelations  and  to  the 
House  Cormnittee  on  Agriculture,  and  the  House  Committee  on 
International  Relations  if  transmitted  while  Congress  is  in 
session,  or  sixt}'  days  following  the  date  of  transmittal  if  trans- 
mitted while  Congress  is  not  in  session. 

(4)  Any  loan  made  under  the  authority  of  this  section  shall 
bear  interest  at  such  rate  as  the  President  may  determine  but 
not  less  than  the  cost  of  funds  to  the  United  States  Treasur3^ 
taking  into  consideration  the  current  average  market  3d  elds  on 
outstanding  marketable  obligations  of  the  United  States  having 
maturit}^  comparable  to  the  maturity  of  such  loans,  unless  the 
President  shall  in  specific  instances  after  consultation  with  the 
advisory  committee  established  under  section  407  designate  a 
different  rate: 

Provided,  jurther,  That  paragraphs  (2),  (3),  and  (4)  of  the  fore- 
going proviso  shall  not  apph"  in  the  case  of  any  nation  where  the 
foreign  currencies  or  credits  owned  b}^  the  United  States  and 
available  for  use  b}^  it  in  such  nation  are  determined  b}'  the 
Secretar}^  of  the  Treasury  to  be  in  excess  of  the  normal  require- 
rnents  of  the  departments  and  agencies  of  the  United  States  for 
expenditures  in  such  nations  for  the  two  fiscal  3'ears  following  the 
fiscal  vear  in  which  such  determination  is  made.  The  amount  of 


23 

any  such  excess  shall  be  devoted  to  the  extent  practicable  and 
without  regard  to  paragraph  (1)  of  the  foregoing  proviso,  to  the 
acquisition  of  sites,  buildings,  and  grounds  under  paragraph  (4) 
of  subsection   (b)   of  this  section  and  to  assist  such  nation  in 
undertaking  self-help  measures  to  increase  its  production  of  agri- 
cultural commodities  and  its  facilities  for  storage  and  distribution 
of  such  commodities.  Assistance  under  the  foregoing  provisions 
shall  be  hmited  to  self-help  measures  additional  to  those  which 
would  be  undertaken  without  such  assistance.  Upon  the  deter- 
mination by  the  Secretary  of  the  Treasury  that  such  an  excess 
exists  with  respect  to  any  nation,  the  President  shall  advise  the 
Senate  Committee  on  Agriculture  and  Forestry  and  the  Senate 
Committee  on  Foreign  Relations  and  the  House  Committee  on 
Agriculture  and  the  llouse  Committee  on  International  Relations 
of  such  determination;  and  shall  thereafter  report  to  each  such 
committee  as  often  as  ma}^  be  necessary  to  keep  such  committee 
advised  as  to  the  extent  of  such  excess,  the  purposes  for  which 
it  is  used  or  proposed  to  be  used,  and  the  effects  of  such  use. 
(7  U.S.C.  1704.) 
Sec.  105.  Foreign  currencies  received  pursuant  to  this  Act  shall  be 
deposited  in  a  special  account  to  the  credit  of  the  United  States  and 
shall  be  used  only  pursuant  to  section  104,  and  any  department  or 
agency  of  the  Government  using  any  of  such  currencies  for  a  purpose 
for  which  funds  have  been  appropriated  shall  reimburse  the  Com- 
modity Credit  Corporation  in  an  amount  equivalent  to  the  dollar 
value  of  the  currencies  used.  The  President  shall  utilize  foreign  cur- 
rencies received  pursuant  to  this  Act  in  such  manner  as  will,  to  the 
maximum  extent  possible,  reduce  any  deficit  in  the  balance  of  pa}- 
ments  of  the  United  States.  (7  U.S.C.  1705.) 

Sec.  106.  (a)  Payment  by  anv  friendh^  country  for  commodities  pur- 
chased for  dollars  on  credit  shall  be  upon  terms  as  favorable  to  the 
United  States  as  the  economy  of  such  country  will  permit.  Payment  for 
such  commodities  shall  be  in  dollars  with  interest  at  such  rates  as  the 
Secretary  may  determine  but  not  less  than  the  minimum  rate  required 
by  section  201  of  the  Foreign  Assistance  Act  of  1961  for  loans  made 
under  that  section.  Pa3'ment  may  be  made  in  reasonable  annual 
amounts  over  periods  of  not  to  exceed  twenty  years  from  the  date  of 
the  last  delivery  of  commodities  in  each  calendar  year  under  the 
agreement,  except  that  the  date  for  beginning  such  annual  payment 
may  be  deferred  for  a  period  not  later  than  two  years  after  such  date 
of  last  delivery,  and  interest  shall  be  computed  from  the  date  of  such 
last  delivery.  Delivery  of  such  commodities  shall  be  made  in  annual 
installments  for  not  more  than  ten  years  follomng  the  date  of  the  sales 
agreement  and  subject  to  the  availability  of  the  commodities  at  the 
time  delivery  is  to  be  made. 

(b)  (1)  Agreements  hereunder  for  the  sale  of  agricultural  commodities 
for  dollars  on  credit  terms  shall  include  provisions  to  assure  that  the 
proceeds  from  the  sale  of  the  commodities  in  the  recipient  country  are 
used  for  such  economic  development  purposes  as  are  agreed  upon  in 
the  sales  agreement  or  an}^  amendment  thereto.  (7  U.S.C.  1706.) 

In  negotiating  such  agreements  with  recipient  countries,  the  United 
States  shall  emphasize  the  use  of  such  proceeds  for  purposes  which 
directly  improve  the  lives  of  the  poorest  of  their  people  and  their 
capacity  to  participate  in  the  development  of  their  countries. 


24 

(2)  Greatest  emphasis  shall  be  placed  on  the  use  of  such  proceeds  to 
carry  out  programs  of  agricultural  development,  rural  development, 
nutrition,  and  population  planning,  and  to  carry  out  the  program  de- 
scribed in  section  406(a)(1)  of  this  Act,  in  those  countries  which  are 
undertaking  self-help  measures  to  increase  agricultural  production, 
improve  storage,  transportation,  and  distribution  of  commodities, 
and  reduce  population  growth  in  accordance  with,  section  109  of  this 
Act,  and  which  programs  are  directed  at  and  likely  to  achieve  the 
policy  objectives  of  sections  103  and  104  of  the  Foreign  Assistance 
Act  of  1961  and  are  consistent  with  the  polic}^  objectives  of  this  Act, 
pursuant  to  agreements  between  the  United  States  and  foreign  govern- 
ments under  which  uses  of  such  proceeds  shall  be  made  for  such  pur- 
poses. Such  uses  shall  be  deemed  pa3^ments  for  the  purpose  of  section 
103(b)  of  this  Act,  except  that  for  any  fiscal  year  the  total  value  of 
such  payments  ma}^  not  exceed  15  per  centum  of  the  total  value  of  all 
agreements  entered  into  under  title  I  of  this  Act  for  such  fiscal  3^ear. 
Such  payments  shall  be  described  in  the  reports  required  by  section 
408  of  this  Act  and  section  657  of  the  Foreign  Assistance  Act  of  1961. 

(3)  In  entering  into  agreements  for  the  sale  of  agricultural  com- 
modities for  dollars  on  credit  terms  under  this  title,  priority  shall  be 
given  to  countries  which  agree  to  use  the  proceeds  from  the  sale  of  the 
commodities  in  accordance  with  the  country's  agricultural  develop- 
ment plan  which — 

(A)  is  designed  to  increase  the  access  of  the  poor  in  the  recipient 
country  to  an  adequate,  nutritious,  and  stable  food  supply; 

(B)  provides  for  such  objectives  as — 

(i)  making  farm  production  equipment  and  facihties 
available  to  farmers, 

(ii)  credit  on  reasonable  terms  and  conditions  for  small 
farmers,  and 

(iii)  farm  extension  and  technical  information  services 
designed  to  improve  the  marketing,  storage,  transportation, 
and  distribution  system  for  agricultural  commodities  and  to 
develop  the  physical  and  institutional  infrastructure  support- 
ing the  small  farmer; 

(C)  provides  for  participation  by  the  poor,  insofar  as  possible, 
in  the  foregoing  at  the  regional  and  local  levels ;  and 

(D)  is  designed  to  reach  the  largest  practicable  number  of 
farmers  in  the  recipient  country. 

Sec.  107.  (a)  It  is  also  the  policy  of  the  Congress  to  stimulate  and 
maximize  the  sale  of  United  States  agricultural  commodities  for  dollars 
through  the  private  trade  and  to  further  the  use  of  private  enterprise  to 
the  maximum,  thereby  strengthening  the  development  and  expansion 
of  foreign  commercial  markets  for  United  States  agricultural  com- 
modities. In  furtherance  of  this  policy,  the  Secretary  of  Agriculture  is 
authorized,  notv/ithstanding  any  other  provision  of  law,  to  enter  into 
agreements  with  foreign  and  United  States  private  trade  for  financing 
the  sale  of  agricultural  commodities  for  export  over  such  periods  of 
time  and  on  such  credit  terms  as  the  Secretary  determines  will  accom- 
plish the  objectives  of  this  section.  Any  agreement  entered  into  under 
this  section  shall  provide  for  the  development  and  execution  of 
projects  which  will  result  in  the  estabhshment  of  facihties  designed  to 


25 

improve  the  storage  or  marketing  of  agricultural  commodities,  or 
whicli  will  otherwise  stimulate  and  expand  private  economic  enterprise 
in  any  friendly  country.  Any  agreement  entered  into  under  this  section 
shall  also  provide  for  the  furnishing  of  such  security  as  the  Secretary 
determines  necessary  to  provide  reasonable  and  adequate  assurance 
of  payment  of  the  purchase  price  in  dollars  with  interest  at  a  rate 
which  will  as  nearly  as  practicable  be  equivalent  to  the  average  cost 
of  funds  to  the  United  States  Treasury,  as  determined  by  the  Secretary 
of  the  Treasury,  on  outstanding  marketable  obligations  of  the  United 
States  having  maturities  comparable  to  maturities  of  credits  extended 
under  this  section.  In  no  event  shall  the  rate  of  interest  be  less  than 
the  minimum  rate,  or  the  delivery  period,  deferral  of  first  payment, 
or  term  of  credit  be  longer  than  the  maximum  term,  authorized  in 
section  106.  In  carrying  out  this  Act,  the  authority  provided  in  this 
section  for  making  dollar  sales  shaU  be  used  to  the  maximum  extent 
practicable. 

(b)  In  carrying  out  the  provisions  of  this  section,  the  Secretary  shall 
take  reasonable  precautions  to  safeguard  usual  marketings  of  the 
United  States  and  to  avoid  displacing  any  sales  of  United  States 
agricultural  commodities  which  the  Secretary  finds  and  determines 
would  otherwise  be  made  for  cash  dollars. 

(c)  The  Secretary  shall  obtain  commitments  from  purchasers  that 
will  prevent  resale  or  transshipment  to  other  countries,  or  use  for  other 
than  domestic  purposes,  of  agricultural  commodities  purchased  under 
this  section. 

(d)  In  carr3ring  out  this  Act,  the  provisions  of  sections  102,  103(a), 
103(d),  103(e),  103(f),  103 (j),  103 (k),  110,  401,  402,  403,  404,  405, 
407,  408,  and  409  shall  be  apphcable  to  sales  under  this  section.  (7 
U.S.C.  1707.) 

Sec.  108.  The  Commodity  Credit  Corporation  ma3^  finance  ocean 
freight  charges  incurred  pursuant  to  agreements  for  sales  for  foreign 
currencies  (other  than  those  providing  for  conversion  to  dollars  as 
described  in  section  103(b)  of  this  Act)  entered  into  hereunder  only  to 
the  extent  that  such  charges  are  higher  (than  would  otherwise  be  the 
case)  by  reason  of  a  requirement  that  the  commodities  be  transported 
in  United  States-flag  vessels.  Such  agreements  shall  require  the  balance 
of  such  charges  for  transportation  in  United  States  vessels  to  be  paid 
in  dollars  by  the  nations  or  organizations  with  whom  such  agreements 
are  entered  into.  (7  U.S.C.  1708.) 

Sec.  109.  (a)  Before  entering  into  agreements  with  developing 
countries  for  the  sale  of  United  States  agricultural  commodities  on 
whatever  terms,  the  President  shall  consider  the  extent  to  which  the 
recipient  country  is  undertaking  wherever  practicable  self-help  meas- 
ures to  increase  per  capita  production  and  improve  the  means  for 
storage  and  distribution  of  agricultural  commodities,  including: 

(1)  devoting  land  resources  to  the  production  of  needed  food 
rather  than  to  the  production  of  nonfood  crops — especially  non- 
food crops  in  world  suplus ; 

(2)  development  of  the  agricultural  chemical,  farm  machinery 
and  equipment,  transportation  and  other  necessary  industries 
through  private  enterprise; 

(3)  training  and  instructing  farmers  in  agricultural  methods 
and  techniques; 


26 

(4)  constructing  adequate  storage  facilities; 

(5)  improving  marketing  and  distribution  systems; 

(6)  creating  a  favorable  environment  for  private  enterprise  and 
investment,  both  domestic  and  foreign,  and  utilizing  available 
technical  know-how ; 

(7)  establishing  and  maintaining  Government  policies  to  insure 
adequate  incentives  to  producers ; 

(8)  establishing  and  expanding  institutions  for  adaptive  agri- 
cultural research; 

(9)  allocating  for  these  purposes  sufficient  national  budgetary 
and  foreign  exchange  resources  (including  those  supphed  by 
bilateral,  multilateral  and  consortium  aid  programs)  and  local 
currency  resources  (resulting  from  loans  or  grants  to  recipient 
governments  of  the  proceeds  of  local  currency  sales) ; 

(10)  carrying  out  voluntary  programs  to  control  population 
growth. 

In  taking  these  self-help  measures  into  consideration  the  President 
shall  take  into  particular  account  the  extent  to  which  they  are  being 
carried  out  in  ways  designed  to  contribute  directly  to  development 
progress  in  poor  rural  areas  and  to  enable  the  poor  to  participate 
actively  in  increasing  agricultural  production  through  small  farm 
agriculture. 

(b)  Notwithstanding  any  other  provisions  of  this  Act,  in  agreements 
with  nations  not  engaged  in  armed  conflict  against  Communist  forces  or 
against  nations  with  w^hich  the  United  States  has  no  diplomatic 
relations,  not  less  than  20  per  centum  of  the  foreign  currencies  set 
aside  for  purposes  other  than  those  in  sections  104(a),  (b),  (c),  and  (j) 
shall  be  allocated  for  the  self-help  measures  set  forth  in  this  section. 

(c)  Each  agreement  entered  into  under  this  title  shall  describe  the 
program  which  the  recipient  country  is  undertaking  to  improve  its 
production,  storage,  and  distribution  of  agricultural  commodities;  and 
shall  provide  for  termination  of  such  agreement  whenever  the 
President  finds  that  such  program  is  not  being  adequately  developed. 
(7  U.S.C.  1709.) 

Sec.  110.  Agreements  shall  not  be  entered  into  under  this  title  during 
any  calendar  year  which  will  call  for  an  appropriation  to  reimburse  the 
Commodity  Credit  Corporation  in  an  amount  in  excess  of  $1,900,000,- 
000,  plus  any  amount  by  which  agreements  entered  into  under  this 
title  in  prior  years  have  called  or  will  call  for  appropriations  to  reim- 
burse the  Commodity  Credit  Corporation  in  amounts  less  than 
authorized  for  such  prior  years. 

Sec.  111.  Not  more  than  25  per  centum  of  the  food  aid  commodities 
provided  under  this  title  in  each  fiscal  year  shall  be  allocated  and 
agreed  to  be  delivered  to  countries  other  than  those  with  an  annual 
per  capita  gross  national  product  of  $300  or  less  and  affected  |by 
inability  to  secure  sufficient  food  for  their  immediate  requirements 
through  their  own  production  or  commercial  purchase  from  abroad, 
unless  the  President  certifies  to  the  Congress  that  the  use  of  such  food 
assistance  is  required  for  humanitarian  food  purposes  and  neither 
House  of  Congress  disapproves  such  use,  by  resolution,  within  thirty 
calendar  days  after  such  certification.  In  determining  per  capita  gross 
national  product  for  the  purposes  of  this  section,  the  President  is 
authorized  and  directed  to  make  use  of  data  developed  by  the  World 


27 

Bank  for  its  most  recent  annual  report  and  relied  upon  by  the  Secretary 
of  the  Treasury.  A  reduction  below  75  per  centum  in  the  proportion 
of  food  aid  allocated  and  agreed  to  be  delivered  to  countries  with  a 
per  capita  gross  national  product  of  $300  or  less  and  affected  by 
inability  to  secure  sufficient  food  for  their  immediate  requirements 
through  their  own  production  or  commercial  purchase  from  abroad 
which  results  from  significantly  changed  circumstances  occurring  after 
the  initial  allocation  shall  not  constitute  a  violation  of  the  requirements 
of  this  section.  Any  reallocation  of  food  aid  shall  be  in  accordance 
with  this  section  so  for  as  practicable.  The  President  shall  report 
promptly  any  such  reduction,  and  the  reasons  therefor,  to  the  Congress. 

Sec.  201.  (a)  The  President  is  authorized  to  determine  requirements 
and  furnish  agricultural  commodities,  on  behalf  of  the  people  of  the 
United  States  of  America,  to  meet  famine  or  other  urgent  or  extraor- 
dinary relief  requirements;  to  combat  malnutrition,  especially  in 
children;  to  promote  economic  and  community  development  in 
friendly  developing  areas;  and  for  needy  persons  and  nonprofit  school 
lunch  and  preschool  feeding  programs  outside  the  United  States. 
The  Commodity  Credit  Corporation  shall  make  available  to  the 
President  such  agricultural  commodities  determined  to  be  available 
under  section  401  as  he  may  request.  (7  U.S.C.  1721.) 

(b)  The  minimum  quantity  of  agricultural  commodities  distributed 
under  this  title  shall  be  1,300,000  tons  of  which  the  minimum  dis- 
tributed through  nonprofit  voluntary  agencies  and  the  World  Food 
Program  shall  be  one  million  tons  in  each  fiscal  year,  unless  the  Presi- 
dent determines  and  reports  to  the  Congress,  together  with  his  reasons, 
that  such  quantity  cannot  be  used  effectively  to  carr}^  out  the  purposes 
of  this  title:  Provided,  That  such  minimum  quantity  shall  not  exceed 
the  total  quantity  of  commodities  determined  to  be  available  for  dis- 
position under  this  Act  pursuant  to  section  401,  less  the  quantity  of 
commodities  required  to  meet  famine  or  other  urgent  or  extraordinary 
relief  requirements. 

Sec.  202.  The  President  may  furnish  commodities  for  the  purposes 
set  forth  in  section  201  through  such  friendly  governments  and  such 
agencies,  private  or  public,  including  intergovernmental  organizations 
such  as  the  World  Food  Program  and  other  multilateral  organizations 
in  such  manner  and  upon  such  terms  and  conditions  as  he  deems 
appropriate.  The  President  shall,  to  the  extent  practicable,  utilize 
nonprofit  voluntary  agencies  registered  with,  and  approved  by,  the 
Advisory  Committee  on  Voluntary  Foreign  Aid.  Insofar  as  practicable, 
all  commodities  furnished  hereunder  shall  be  clearly  identified  by 
appropriate  marking  on  each  package  of  container  in  the  language  of 
the  locality  where  they  are  distributed  as  being  furnished  b}^  the 
people  of  the  United  States  of  America.  The  assistance  to  needy 
persons  shall  insofar  as  practicable  be  directed  toward  community 
and  other  self-help  activities  designed  to  alleviate  the  causes  of  the 
need  for  such  assistance.  Except  in  the  case  of  emergenc}^,  the  President 
shall  take  reasonable  precaution  to  assure  that  commodities  furnished 
hereunder  will  not  displace  or  interfere  with  sales  which  might  other- 
wise be  made.   (7  U.S.C.  1722.) 

Sec.  203.  The  Commodity  Credit  Corporation  may,  in  addition  to 
the  cost  of  acquisition,  pay  with  respect  to  commodities  made  available 
under  this  title  costs  for  packaging,  enrichment,  preservation,  and 


28 

fortification;  processing,  transportation,  handling,  and  other  incidental 
costs  up  to  the  time  of  their  delivery  free  on  board  vessels  in  United 
States  ports;  ocean  freight  charges  from  United  States  ports  to  desig- 
nated ports  of  entry  abroad,  or  in  the  case  of  landlocked  countries, 
transportation  from  United  States  ports  to  designated  points  of 
entry  abroad;  and  charges  for  general  average  contributions  arising 
out  of  the  ocean  transport  of  commodities  transferred  pursuant 
thereto.    (7   U.S.C.    1723.) 

Sec.  204.  Programs  of  assistance  shall  not  be  undertaken  under  this 
title  during  any  calendar  year  which  call  for  an  appropriation  of  more 
than  $600,000,000  to  reimburse  the  Commodity  Credit  Corporation 
for  all  costs  incurred  in  connection  with  such  programs  (including  the 
Corporation's  investment  in  commodities  made  available)  plus  any 
amount  by  which  programs  of  assistance  undertaken  under  this  title 
in  the  preceding  calendar  year  have  called  or  will  call  for  appropriations 
to  reimburse  the  Commodity  Credit  Corporation  in  amounts  less  than 
were  authorized  for  such  purpose  during  such  preceding  year.  In  addi- 
tion to  other  funds  available  for  such  purposes  under  any  other  Act, 
funds  made  available  under  this  title  may  be  used  in  an  amount  not- 
exceeding  $7,500,000  annually  to  purchase  foreign  currencies  accruing 
under  title  I  of  this  Act  in  order  to  meet  costs  (except  the  personnel  and 
administrative  costs  of  cooperating  sponsors,  distributing  agencies, 
and  recipient  agencies,  and  the  costs  of  construction  or  maintenance 
of  any  church  owned  or  operated  edifice  or  any  other  edifices  to  be 
used  for  sectarian  purposes)  designed  to  assure  that  commodities  made 
available  under  this  title  are  used  to  carry  out  effectively  the  purposes 
for  which  such  commodities  are  made  available  or  to  promote  com- 
munity and  other  self-help  activities  designed  to  alleviate  the  causes 
of  the  need  for  such  assistance :  Provided,  however,  That  such  funds  shall 
be  used  only  to  supplement  and  not  substitute  for  funds  normally 
available  for  such  purposes  from  other  non- United  States  Government 
sources.  (7  U.S.C.  1724.) 

Sec.  205.  It  is  the  sense  of  the  Congress  that  the  President  should 
encourage  other  advanced  nations  to  make  increased  contributions 
for  the  purpose  of  combating  world  hunger  and  malnutrition,  partic- 
ularly through  the  expansion  of  international  food  and  agricultural 
assistance  programs.  It  is  further  the  sense  of  the  Congress  that  as  a 
means  of  achieving  this  objective,  the  United  States  should  work  for 
the  expansion  of  the  United  Nations  World  food  program  beyond 
its  present  established  goals.  (7  U.S.C.  1725.) 

Sec.  206.  Except  to  meet  famine  or  other  urgent  or  extraordinary 
relief  requirements,  no  assistance  under  this  title  shall  be  provided 
under  an  agreement  permitting  generation  of  foreign  currency  pro- 
ceeds unless  (1)  the  country  receiving  the  assistance  is  undertaking 
self-help  measures  in  accordance  with  section  109  of  this  Act,  (2)  the 
specific  uses  to  which  the  foreign  currencies  are  to  be  put  are  set  forth 
in  a  written  agreement  between  the  United  States  and  the  recipient 
country,  and  (3)  such  agreement  provides  that  the  currencies  will  be 
used  for  purposes  specified  in  section  103  of  the  Foreign  Assistance 
Act  of  1961.  The  President  shall  include  information  on  currencies 
used  in  accordance  with  this  section  in  the  reports  required  under 
section  408  of  this  Act  and  section  657  of  the  Foreign  Assistance  Act 
of  1961. 


29 
Title  III 

Sec.  301.  [This  section  contains  an  amendment  to  section  407  of  the 
Agricultural  Act  of  1949,  authorizins:  Commodity  Credit  Corporation 
to  make  commodities  available  to  relieve  distress.] 

Sec.  302.  [This  section  contains  a  revision  of  section  416  of  the 
Agricultural  Act  of  1949,  which  authorizes  various  methods  of  disposi- 
tion by  Commodity  Credit  Corporation  of  commodities  in  surplus 
supply.] 

Sec.  303.  The  Secretary  shall,  whenever  he  determines  that  such 
action  is  in  the  best  interest  of  the  United  States,  and  to  the  maximum 
extent  practicable,  barter  or  exchange  agricultural  commodities  owned 
by  the  Commodity  Credit  Corporation  for  (a)  such  strategic  or  other 
materials  of  which  the  United  States  does  not  domestically  produce  its 
requirements  and  which  entail  less  risk  of  loss  through  deterioration  or 
substantially  less  storage  charges  as  the  President  may  designate,  or 
(b)  materials,  goods,  or  equipment  required  in  connection  with  foreign 
economic  and  military  aid  and  assistance  programs,  or  (c)  materials  or 
equipment  required  in  substantial  quantities  for  offshore  construction 
programs.  He  is  hereby  directed  to  use  every  practicable  means,  in 
cooperation  with  other  Government  agencies,  to  arrange  and  make, 
through  private  channels,  such  barters  or  exchanges  or  to  utilize  the 
authority  conferred  on  him  by  section  4(h)  of  the  Commodity  Credit 
Corporation  Charter  Act,  as  amended,  to  make  such  barters  or  ex- 
changes. In  carrying  out  barters  or  exchanges  authorized  by  this  sec- 
tion, no  restrictions  shall  be  placed  on  the  countries  of  the  free  world 
into  which  surplus  agricultural  commodities  may  be  sold,  except  to 
the  extent  that  the  Secretary  shall  find  necessary  in  order  to  take  rea- 
sonable precautions  to  safeguard  usual  marketings  of  the  United  States 
and  to  assure  that  barters  or  exchanges  under  this  Act  will  not  unduly 
disrupt  world  prices  of  agricultural  commodities  or  replace  cash  sales 
for  dollars.  The  Secretary  may  permit  the  domestic  processing  of  raw 
materials  of  foreign  origin.  The  Secretary  shall  endeavor  to  cooperate 
with  other  exporting  countries  in  preserving  normal  patterns  of 
commercial  trade  with  respect  to  commodities  covered  by  formal 
multilateral  international  marketing  agreements  to  which  the  United 
States  is  a  party.  Agencies  of  the  United  States  Government  pro- 
curing such  materials,  goods,  or  equipment  are  hereby  directed  to 
cooperate  with  the  Secretary  in  the  disposal  of  surplus  agricultural 
commodities  by  means  of  barter  or  exchange.  The  Secretary  is  also 
directed  to  assist,  through  such  means  as  are  available  to  him,  farmers' 
cooperatives  in  effecting  exchange  of  agricultural  commodities  in 
their  possession  for  strategic  materials.  Barter  or  exchange  of  agricul- 
tural commodities  under  clause  (a)  of  this  section  shall  be  limited  to 
exchange  for  materials  which  originate  in  the  country  to  which  the 
surplus  agricultural  commodities  are  exported  and  to  arrangements 
which  will  prevent  resale  or  transshipment  of  the  agricultural  com- 
modities to  other  countries.  (7  U.S.C.  1692.) 

Sec.  304-308.  [Repealed  on  November  11,  1966,  by  Public  Law  89- 
808.] 

Title  IV 

Sec.  401.  After  consulting  with  other  agencies  of  the  Government 
affected  and  within  policies  laid  down  by  the  President  for  implement- 


30 

ing  this  Act,  and  after  taking  into  account  productive  capacity, 
domestic  requirements,  farm  and  consumer  price  levels,  commercial 
exports,  and  adequate  carryover,  the  Secretary  of  Agriculture  shall 
determine  the  agricultural  commodities  and  quantities  thereof  avail- 
able for  disposition  under  this  Act,  and  the  commodities  and  quantities 
thereof  which  may  be  included  in  the  negotiations  with  each  countr}^ 
No  commodity  shall  be  available  for  disposition  under  this  Act  if  such 
disposition  would  reduce  the  domestic  supply  of  such  commodity 
below  that  needed  to  meet  domestic  requirements,  adequate  carryover, 
and  anticipated  exports  for  dollars  as  determined  by  the  Secretary  of 
Agriculture  at  the  time  of  exportation  of  such  commodity.  (7  U.S.C. 
1731.) 

Sec.  402.  The  term  ''agricultural  commodity"  as  used  in  this  Act 
shall  include  any  agricultural  commodity  produced  in  the  United  States 
or  product  thereof  produced  in  the  United  States:  Provided,  however, 
That  the  term  ''agricultural  commodity"  shall  not  include  alcoholic 
beverages,  and  for  the  purposes  of  title  II  of  this  Act,  tobacco  or 
products  thereof.  The  foregoing  proviso  shall  not  be  construed  as 
prohibiting  representatives  of  the  domestic  mne  industry  from  par- 
ticipating in  market  development  activities  carried  out  wath  foreign 
currencies  made  available  under  title  I  of  this  Act  which  have  as  their 
purpose  the  expansion  of  export  sales  of  United  States  agricidtural 
commodities.  (7  U.S.C.  1732.)  Subject  to  the  availability  of  appropria- 
tions therefor,  any  domestically  produced  fishery  product  may  be 
made  available  under  this  Act.  (7  U.S.C.  1732.) 

Sec.  403.  There  are  hereby  authorized  to  be  appropriated  such  sums 
as  may  be  necessary  to  carry  out  this  Act  including  such  amounts  as 
may  be  required  to  make  payments  to  the  Commodity  Credit  Cor- 
poration, to  the  extent  the  Commodity  Credit  Corporation  is  not  reim- 
bursed under  sections  104(j)  and  105,  for  its  actual  costs  incurred 
or  to  be  incurred.  In  presenting  his  budget,  the  President  shall  classify 
expenditures  under  this  Act  as  expenditures  for  international  affairs 
and  finance  rather  than  for  agriculture  and  agricultural  resources. 
(7  U.S.C.  1733.) 

Sec.  404.  The  programs  of  assistance  undertaken  pursuant  to  this 
Act  shall  be  directed  toward  the  attainment  of  the  humanitarian 
objectives  and  national  interest  of  the  United  States.  (7  U.S.C.  1734.) 

Sec.  405.  The  authority  and  funds  provided  by  this  Act  shall  be 
utilized  in  a  manner  that  will  assist  friendly  countries  that  are  deter- 
mined to  help  themselves  toward  a  greater  degree  of  self-reliance  in 
providing  enough  food  to  meet  the  needs  of  their  people  and  in  re- 
solving their  problems  relative  to  population  growth.  (17  U.S.C. 
1735.) 

Sec.  406.  (a)  In  order  to  further  assist  friendly  developing  countries 
to  become  self-sufficient  in  food  production,  the  President  is  author- 
ized, notwithstanding  any  other  provision  of  law — 

(1)  To  establish  and  administer  a  program  of  farmer-to-farmer 
assistance  between  the  United  States  and  such  countries  to  help 
farmers  in  such  countries  in  the  practical  aspects  of  increasing 
food  production  and  distribution  and  improving  the  effectiveness 
of  their  farming  operations; 

(2)  to  enter  into  contracts  or  other  cooperative  agreements  with, 
or  make  grants  to,  land-grant  colleges  and  universities  and  other 


31 

institutions  of  higher  learning  in  the  United  States  to  recruit  per- 
sons who  by  reason  of  training,  education,  or  practical  experience 
are  knowledgeable  in  the  practical  arts  and  sciences  of  agriculture 
and  home  economics,  and  to  train  such  persons  in  the  practical 
techniques  of  transmitting  to  farmers  in  such  countries  improved 
practices  in  agriculture,  and  to  participate  in  carrying  out  the 
program  in  such  countries  including,  where  desirable,  additional 
courses  for  training  or  retraining  in  such  countries ; 

(3)  To  consult  and  cooperate  wdth  private  non-profit  farm 
organizations  in  the  exchange  of  farm  youth  and  farm  leaders  with 
developing  countries  and  in  the  training  of  farmers  of  such  de- 
veloping countries  within  the  United  States  or  abroad  ; 

(4)  To  conduct  research  in  tropical  and  subtropical  agriculture 
for  the  improvement  and  development  of  tropical  and  subtropical 
food  products  for  dissemination  and  cultivation  in  friendly 
countries; 

(5)  To  coordinate  the  program  authorized  in  this  section  with 
other  foreign  assistance  activities  of  the  United  States ; 

(6)  To  establish  by  such  rules  and  regulations  as  he  deems 
necessary  the  conditions  for  eligibility  and  retention  in  and  dis- 
missal from  the  program  established  in  this  section,  together  with 
the  terms,  length  and  nature  of  service,  compensation,  employee 
status,  oaths  of  office,  and  security  clearances,  and  such  persons 
shall  be  entitled  to  the  benefits  and  subject  to  the  responsibilities 
applicable  to  persons  serving  in  the  Peace  Corps  pursuant  to 
the  provisions  of  section  612,  volume  75  of  the  Statutes  at  Large, 
as  amended;  and 

(7)  To  the  maximum  extent  practicable,  to  pay  the  costs  of 
such  program  through  the  use  of  foreign  currencies  accruing 
from  the  sale  of  agricultural  commodities  under  this  Act,  as 
provided  in  section  104(i). 

(b)  There  are  hereby  authorized  to  be  appropriated  not  to  exceed 
$33,000,000  during  any  fiscal  year  for  the  purpose  of  carrying  out  the 
provisions  of  this  section.  (7  U.S.C.  1736.) 

Sec.  407.  There  is  hereby  established  an  Advisory  Committee  com- 
posed of  the  Secretary  of  State,  the  Secretary  of  the  Treasury,  the 
Secretary  of  Agriculture,  the  Director  of  the  Bureau  of  the  Budget, 
the  Administrator  of  the  Agency  for  International  Development,  the 
chairman  and  the  ranking  minority  member  of  both  the  House 
Committee  on  Agriculture  and  the  House  Committee  on  Foreign 
Affairs,  and  the  chairman  and  the  ranking  minority  member  of  both 
the  Senate  Committee  on  Agriculture  and  Forestry  and  the  Senate 
Committee  on  Foreign  Relations,  or  their  designees  (who  shall  be 
members  of  such  committees  or,  in  the  case  of  members  from  the 
executive  branch,  who  shall  have  been  confirmed  by  the  Senate). 

The  Advisory  Committee  shall  survey  the  general  policies  relating 
to  the  administration  of  the  Act,  including  the  manner  of  implement- 
ing the  self-help  provisions,  the  uses  to  be  made  of  foreign  currencies 
which  accrue  in  connection  with  sales  for  foreign  currencies  under 
title  I,  the  amount  of  currencies  to  be  reserved  in  sales  agreements 
for  loans  to  private  industry  under  section  104(e),  rates  of  exchange, 
interest  rates,  and  the  terms  under  which  dollar  credit  sales  are  made, 
and  shall  advise  the  President  w^ith  respect  thereto.  The  Advisory 


32 

Committee  shall  meet  not  less  than  four  tunes  during  each  calendar 
year  at  the  call  of  the  Acting  Chairman  of  such  Committee  who  shall 
preside  in  the  following  order:  The  chairman  of  the  House  Committee 
on  Agricidture,  the  chairman  of  the  Senate  Committee  on  Foreign 
Relations,  the  chairman  of  the  Senate  Committee  on  Agriculture  and 
Forestry,  and  the  chairman  of  the  House  Committee  on  Foreign 
Affairs.  (7  U.S.C.  1736a.), 

Sec.  408.  (a)  The  President  shall  make  a  report  to  Congress  not 
later  than  April  1  each  year  with  respect  to  the  activities  carried  out 
under  this  Act  during  the  preceding  fiscal  year.  Such  report  shall 
describe  the  progress  of  each  country  with  which  agreements  are  in 
effect  under  title  I  in  carrying  out  its  agreements  under  such  title. 
(7  U.S.C.  1736b.) 

(b)  In  his  presentation  to  the  Congress  of  planned  programing 
of  food  assistance  for  each  fiscal  year,  the  President  shall  include  a 
global  assessment  of  food  production  and  needs,  self-help  steps  which 
are  being  taken  by  food-short  countries  under  section  109(a)  of  this 
Act,  steps  which  are  being  taken  to  encourage  other  countries  to 
increase  their  participation  in  food  assistance  or  the  financing  of  food 
assistance,  and  the  relationship  between  food  assistance  provided  to 
each  country  under  this  Act  and  other  foreign  assistance  provided 
to  such  country  by  the  United  States  and  other  donors. 

(c)  Not  later  than  November  1  of  each  calendar  year  the  President 
shall  submit  to  the  House  Committee  on  Agriculture,  the  House  Com- 
mittee on  International  Relations,  the  Senate  Committee  on  Agricul- 
ture and  Forestry,  and  the  Senate  Committee  on  Foreign  Relations  a 
revised  global  assessment  of  food  production  and  needs,  and  revised 
planned  programing  of  food  assistance  for  the  current  fiscal  year, 
to  reflect,  to  the  maximum  extent  feasible,  the  actual  availability  of 
commodities  for  food  assistance. 

Sec.  409.  No  agreements  to  finance  sales  under  title  I  and  no  pro- 
grams of  assistance  under  title  II  shall  be  entered  into  after  Decem- 
ber 31,  1977.  (7  U.S.C.  1736c.) 

Sec.  410.  The  provisions  of  section  620(c)  of  the  Foreign  Assistance 
Act  of  1961,  as  amended  (referring  to  nationalization,  expropriation, 
and  related  governmental  Acts  affecting  property  owned  by  United 
States  citizens),  shall  be  applicable  to  assistance  provided  under  title 
I  of  this  Act.  (7  U.S.C.  1736d.) 

Sec.  411.  No  agricultural  commodities  shall  be  sold  under  title  I 
or  title  III  or  donated  under  title  II  of  this  Act  to  North  Vietnam, 
unless  by  an  Act  of  Congress  enacted  subsequent  to  July  1,  1973, 
assistance  to  North  Vietnam  is  specifically  authorized. 

Sec.  412.  The  President  is  authorized  and  encouraged  to  seek  inter- 
national agreement,  subject  to  congressional  approval,  for  a  system 
of  food  reserves  to  meet  food  shortage  emergencies  and  to  provide 
insurance  against  unexpected  shortfalls  in  food  production,  with  costs 
of  such  a  system  to  be  equitably  shared  among  nations  and  with 
farmers  and  consumers  to  be  given  firm  safeguards  against  market 
price  disruption  from  such  a  system. 


STATISTICAL  TABLES  RELATING  TO  PUBLIC  LAW  480 


TABLE  I.-VALUE  OF  U.S.  FARM  PRODUCTS  SHIPPED  UNDER  PUBLIC  LAW  480  ANNUALLY.  1955-77 

[In  thousands  of  dollars] 

Total  Title  I  Title  II 

1955 384,  425 

1956 884,903 

1957 1,  525,  062 

1958 981,033 

1959 1,  017,  286 

1960 1,115,866 

1961 1,  316,  366 

1952 1,  495,  498 

1963 1, 456,  269 

1964 1,417,993 

1965 1,570,487 

1966 1,345,879 

1967 1,270,818 

1968 1,  279,  464 

1969 1,  038,  590 

1970 1,055,815 

1971 1,022,963 

1972 1,082,741 

1973 957,361 

1974 858,291 

1975 ..  1,  098,  057 

1976  estimate 1,359,147 

1977  estimate 1, 231, 000 

(33) 


197,  584 

186,  841 

737, 236 

247, 667 

1,  308,  283 

216,779 

757,  292 

223,  741 

856,  402 

160, 884 

973, 104 

142,762 

1,095,449 

220,917 

1,  246,  768 

248,  730 

1, 192,  805 

263,  464 

1, 148, 043 

269,  950 

1,331,739 

238,  748 

1,079,357 

266,  522 

1,003,450 

257,  368 

1,029,326 

250, 138 

773,  853 

264, 737 

815,221 

240,  594 

743,018 

279,  945 

679,  000 

403,  741 

667,  400 

289, 961 

575,  376 

282,915 

763,  620 

334, 437 

983,  000 

376, 147 

866, 000 

365,000 

34 


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39 


TABLE  VI -PRESENTATION  TO  THE  CONGRESS  OF  PROJECTED  PROGRAMING  FOR  FISCAL  YEAR  197S,  PUBLIC  LAW 

480,  TITLE  II 


(Value  and  volume  of  commodities  by  country;  dollars  in  thousands] 


Fiscal 

Fiscal 
year 
1975 

Fiscal  year  1976 

Total 
value 

Wheat 

Feedgrain 

Vegoil 

1 

Region/country 

Value 

Metric 
tons 

Valuo 

Metric 
tons 

Value 

Metric 
tons 

AFRICA 

Botswana— World  food  pro- 
gram  

$1,849 
7,497 
4,619 

690  . 
2,188 
1,932 
1,395 

537 

517 
2,674 
1.413 
1.261 
11,584 
10, 008 

122  . 

1.454 

6.769 

6,568 

12  . 

189 

2.336 

1,501 

£35 

14.  320 

12.350 

52, 425 
2,026 
1,357 

51,959  . 

1,123 

561 

51,615 

9.012 

,3« 

332 

Ethiopia  (total) 

51, 105 
561 

7.867  . 
3. 992  . 

17 

Government  to  Government- 

Voluntary  agencies 

World  food  program 

669 
2,310 
2,197 

113 

905 
2,319 
1,357 

962 
6,519 
6,371 

""148' 
1.920 
1.527 

""393" 
2.296 
1.226 
1.070 
6,258 
5,271 

562 
1.  580  . 
1.480  . 

100  . 

1.048 
2.165 
1,618 

548 
2,570 

999  . 
1,487  . 

84 
2,824 

999  . 
1,487  . 

338 
1.8C1 
1,173 

628 
2.589 

999  . 
1.487  . 

103 
3.075 
2,314 

999  . 
1,  258  . 

57 
1.753 
1.  580  . 

188 
4,574 

959  . 
3,615 
2,742 

545 

481 

343 

340 

3 

41 

41" 

271 

......... 

1.356 

897 

459 

26 

26'" 
1.  075 
21 

21"' 

103 

""163" 
2.054 

""2.'654" 
200 

3,875  . 

2.201 

1.956 

1.945 

20 

235 

""236" 
1,745 

"i.'745". 
7.661 
5, 068  . 
2,  593 
147 

""l47' 
6.237 
123 

""123' 

544 

""544' 
14,605 

'14,' 505'. 
1,168 

17 
126 
84 
42 

456 
958 
802 
155 
24 

17 

Ghana  (total). 

1.454 

1,396 

58 

111 
865 
476 
389 

2,505 
999 

1,437 
19 

2,485 
999 

1,487 
......... 

5,455 

6,159 

296 

723 
10.415 

5,601 

4.815 
15.643 

9,979  . 

5.571  . 

98 
15,  550 

9,979  . 

5.571  . 

"i.'oss' 

117 

Voluntary  agencies 

World  food  program 

Ivory  Coast— World  food  pro- 
gram  

Lesotho  (total) 

77 
40 

440 
885 

Voluntary  agencies 

World  food  program 

Mali  (total) 

Government  to  Government. 

735 
150 
23 

Voluntary  agencies 

World  food  program 

Mauritania 

Government  to  Government. 

24 
67 

23 
65 

Voluntary  agencies 

World  food  program 

Mauritius  (total) 

67 
328 
275 
52 
34 

65 
317 

Government  to  Government. 

267 

World  food  program 

Niger  (total) 

Government  to  Government. 

117 
2,529 

999 

1,487 

43 

1,991 

2,293 

999 

1,258 

36 

1.002 

989 
13 

783 

783 

1.065 
16.025 

9,979  . 

5.571  . 

475 
17,029 
15,433  . 

9,  979  . 

6,  075  . 
378  . 

6.065 

5.906 
159 

4.858 

4,S58 

50 
33 

Voluntary  agencies 

World  food  program 

Nigeria— World  food  program. 
Sengal  (total)          

1,S70 
2.228 
5.205 
3,558 

489 
1,358 
1,178 

981 

197 
1,871 

654 
1.217 
2,379 

987 
2.254 
1,550 

724 

755 

70 

2,377 

2,173 

204 
9,113 

995 
8,123 
11,906 
6,  328  . 
2,845 
2,233  . 
1,277 

776 

501 
2,703 

774 
1,539 

390 

937 

925 
12 

34 
9 

33 
9 

Government  to  Government. 

Voluntary  agencies 

World  food  program 

Sierre  Leone  (total) 

""663"' 

591 

72 

1,737 

175 

1,561 

1.224 

'"625 

Voluntary  agencies 

World  food  program 

Sudan  (total)           

555 

70 

1,667 

Voluntary  agencies 

World  food  program 

161 
1,506 

Tanzania  (total) 

Government  to  Government.. 

1,318 

6,538 

1,123 

Voluntary  agencies 

World  food  program 

1.858 
521 

1,122 
762 
360 

6,125 

4,522 
603 

l.COl 
292 
292 

2.742 

200 

1,168 

1,313 

6.538 

1.224 

1.123 

Togo  (total) 

Voluntary  agencies 

World  food  program 

Upper  Voita  (total) 

Government  to  Government 

1.314 

943 

371  . 
3,745 

999  . 
2,4i0  . 

335 
1,702 
1.690  . 
12 

413 
413 

34" 

1,476 
1,476 

""195' 

513 
218 
295 

3,407 
999 

2,226 

182 

566 

552 

4 

5.066 
2.  568 
2.498 
21,  520 
9,979  . 
9,730 
1,811 
4.673 
4,554 
19 

388 

312 

76 

304 

360 

286 

74 

285 

Voluntary  agencies 

184 

120 

1,132 

1,128 

4 

169 

World  food  program 

Zaire  (total) 

Voluntary  agencies 

World  food  frogram 

34 

4 

a" 

li35 
21 

21* 

116 

1,038 

1,034 

4 

Other. 


Subtotal. 


Total,  Atrica. 


.    69,879 
.    13,658 

59,100 
15,612 

38. 894 
7.755 

7,523 
2,099 

46. 192 
12.  368 

23,  555 
3,591 

156,  976 
23, 142 

7,811 
2.066 

7,336 
1,896 

.    83,537 

74.  712 

46,550 

9.627 

58,  560 

27, 146 

180,118 

9.877 

9,232 

40 


TABLE   VI.— PRESENTATION   TO   THE   CONGRESS   OF   PROJECTED    PROGRAMING   FOR   FISCAL  YEAR   1976, 
PUBLIC  LAW  480.  TITLE  II— Continued 

[Value  and  volume  of  commodities  by  country;  dollars  in  thousands] 


Fiscal 
year 
1974 

Fiscal 

year 
1975 

Fiscal  year  1978 

Total 
value 

Wheat 

Feedgrain 

Vegoil 

Region/country 

Value 

Metric 
tons 

Value 

Metric 
tons 

Value 

Metric 
tons 

NEAR  EAST  AND 
SOUTH  ASIA 

Afghanistan— World        food 
program 

44 

;*"3,"326" 
1,319 
.      2,001 

3,  810 
2,428 
4,001 
3,  300 

70i' 

19, 197 

13,  761 

5,435 

104,  840 

74,  964 

29,  875 

1,787 

815 

972 

'"i2,'i26* 
12, 126 

1,850 
2,119 
1,774 

981 

2,119 

245 

6, 288  . 

11,970  . 

1,166 

869 

839 

Algeria-World  food  program., 
Bangladesh  (total) 

852 

4,404 

677 

620 

Government  to  Government 

Voluntary  agencies , 

World  food  program. 

1,774 

245 

1,165 

852 

4,404 

677 

620 

Egypt  (total) 

.      3,153 

.      2, 899 

254 

.     60,287 

.     55,599 

.      3,688 

.       1,147 

302 

845 

866 

.     16,662 

.     15,786 

876 

.      4, 828 

233 

.      4, 595 

2,611 

2,811 

12,821 

8,312 

4,509 

74,  104 

69, 522 

4,582 

1,980 

1,107 

873 

1,329 
7,794 
7,794 

9,806 

5,397 

4,509 

37.  531 

33,  227 

4,354 

1,218 

491 

727 

459 
5,275 
5,275 

40,  509 

28, 206 

12,  303  . 

124,  754 

105,  786 

18,973 

6,589 

2,451 

4, 138  . 

2,269 
21,434 
21,434 

1,787 
1,787 

8,601 
8,601 

1,128 
1,128 

1.034 

Voluntary  agencies 

World  food  program 

1,034 

India  (total) 

Voluntary  agencies 

World  food  program 

Jordan  (total) 

Voluntary  agencies 

World  food  program 

19,  750 

19,  522 

228 

160 

160 

S5, 789 

93,  762 

2,027  . 

684 

684 

16, 774 
16.773 

15. 388 
15,388 

602 
456 
146 

772 
1,246 
1,245 

559 
418 
141 

Jordan,          WB— Voluntary 

agencies 

Morocco  (total) 

Voluntary  agencies 

World  food  proijram 

Pakistan  (total) 

Voluntary  agencies 

World  food  program 

Sri  Lanka  (total) 

98 
1,273 
1,273 

188 
6,597 
6,597 

708 
1,142 
1.142 

4,661 
1,002 
3,659 
4,547 
2,823 
1,724 

2,445 
1,378 
1,068 
4,  960 
3,  541 
1,419 
2,500 

861 

673 

188 

4,395 

3,488 

907 

1,  5S5 

2,860 
1,525  . 
1,335 
13,244 
8, 123  . 
5, 121 
11,340  . 

880 

■""880" 
512 

"""'5i2"' 

8,175 

■"8,'i75'. 
4,650 

■""4,'550\ 

705  . 
705 

53" 

53 

646 
646 

48 

Voluntary  agencies 

48 

Syria  (total) 

Voluntary  agencies 

World  food  program 

1  -. 
1  .. 

905 

873 

2,500 
6,003 

2,  654 

2,797 

552 

1,325 

1,595 
3,828 

1,534 

1,878 

416 

1,325 

11,340  . 
19,002 

8,667 
7,987  . 
2,348  . 
9,421  . 

......... 

577 

"2,"274" 
2,274 

905 
1,598 

543 
919 
136 

873 

Tunisia  (total) 

Government  to  Govern- 
ment  

Voluntary  agencies 

6,249 

2,074 
2,948 
1,227 
3,792 
3,792 

5,290 

2,278 
2,405 
607 
3,964 
2,380  . 
1,584 
2,387 
2,387 

1,498 

524 
843 

World  food  program 

Turkey  (total) 

131 

Voluntary  agencies 

World  food  proeran 

1,325 
1,300 
1,300 

1,325 
1,178 
1,178 

9,42)   . 

7,480 

7,480 

Yemen  (total) 

Voluntary  agencies 

World  food  program 

1,560 
978 
582  . 

43 
43 

171 
171 

79 
79 

72 
72 

Subtotal ~ 

Other 

104,520    ] 
24, 793 

169,038     : 
4,797 

122,305 
2,234 

70, 966 

808 

278,336 
3,832 

25, 932 
1,076 

131,553 
8,302 

25.  407 
350 

23,427 
330 

Grand  total,  NESA... 

129,313  ,1 

173,835    : 

124,539, 

71,774 

282, 158 

27,008 

139,855 

25, 757 

23.757 

EAST  ASIA 

Indonesia  (total) 9,151 

Government  to  Government.  5,365 

Voluntary  agencies 1,277 

World  food  program 2,509 

Khmer  Republic  (total) 15 

Government  to  Government 

Voluntary  agencies 15 

Korea— World  food  program..  5,  553 

Laos(tot3l) 3,441 

Government  to  Government.  3,080 

Voluntary  agencies 361 

Philippines  (totsi) 11,990 

Voluntary  agencies 8,323 

World  food  program 3,662 

Vietnam  (total) 995 

Government  to  Government.  37 

Voluntary  agencies 958 

World  food  program 

Subtotal 

Other  countries  in  region  less 
than  1.000,000 

Grand  total.  East  Asia. 


8,270       4,060       3,590      16,828  470       3,101 -. 

"3,'ii5 937 659"'"'2,"658 278"*'i,"50i'!]l!II""I^""I 

5,155   3,123   2,931   14,770     192   1,600 

1,764 

0 

1,764 

8,646  7,559  7,315  41,327  98  496  45  140 
3,199  4,718  2,589  13,550  909  7,252  1,220  1,169 
2,943   3,283   1,962   10,309     810   6,632   1.051   1,014 

256  895  627  3,241  99  620  169  155 
9,527  10,129  2,539  11,994  7,559  47,299  31  30 
8,854   9,564   2,217   10,172   7,347   45,528 

673     565     322   1,822     212   1,771     31     30 

3,325  

0 

3,212 

113 


.    31,145 
203 

34,  731 
454 

26,  466 
403 

16,  034 
297 

83,699 
1,682 

9,035 
35 

58, 148 
183 

1,395 
70 

1,339 
148 

.     31,348 

35, 185 

26,  869 

16.  331 

85,  381 

9,072 

58, 331 

1.466 

1,487 

41 


TABLE  VI.— PRESENTATION   TO   THE   CONGRESS    OF    PROJECTED    PROGRAMING   FOR   FISCAL  YEAR    1976, 
PUBLIC  LAW  480,  TITLE  11— Continued 

[Value  and  volume  of  commodities  by  country;  dollars  in  thousands] 


Fiscal 
year 
1974 

Fiscal 
year 
1975 

Fiscal  year  1976 

Total 
value . 

Wheat                   Feedgrain 

Vegojl 

Region/country 

Metric                     Metric 
Value         tons       Value         tons 

Metric 
Value         tons 

LATIN  AMERICA 

Bolivia  (total) 1,847       4,257 

Government  to  Govern- 
ment  

Voluntary  agencies. 

World  food  program , 

Brazil  (total) 

Government  to  Government 

Voluntary  agencies 

World  food  program 

Chile  (total) 

Voluntary  agencies 

World  food  program , 

Columbia  (total) 

Voluntary  agencies 

World  food  program 

Dominican  Republic  (total).. 

Voluntary  agencies. 

World  food  program 

Ecuador  (total) , 

Voluntary  agencies 

World  food  program 

Guatemala  (total).. 

Voluntary  agencies. , 

World  food  program 

Haiti  (total) 

Voluntary  agencies 

World  food  program 

Honduras  (total) 

Voluntary  agencies 

World  food  program 

Nicaragua  (total) 

Voluntary  agencies 

World  food  program 

Panama— Voluntary  agencies. 
Peru  (total) 

Government  to  Government 

Voluntary  agencies 

World  food  program 

Subtotal 

Other 

Grant     total,      Latin 
America 38,716      64,932 


4,553        1,081        5,035       2,538       4,861 


934 


861 


306 
3,614 

307 
4,246 

159 
922 

829 
4,206 

45 
2,493 

297 
4,564 

103 
831 

99 

.      1,722 

762 

125 

337  . 
8,313 

' 

.      5, 456 

1,642 

795 

4,489 

614 

3,171 

233 

225 

.      2, 270 

2,115  . 

.      2,044 

4,281  . 

.      1,142 

1,917 

,1,642 

795 

,4,489 

614 

3,171 

,233 

225 

.      3,210 

3,999 

4,686 

3,059 

11,705 

389 

2,065 

1.238 

1,137 

.      3,210 

3,736 

4,451 

2,883 

10,  708 

377 

2,003  • 

1,191 

1,092 

263 
12,835 

235 
10,335 

176 
3,535 

997 
15,779 

12 
2,683 

63 
13,815 

47 
4,017 

45 

.      6, 844 

3,763 

.      5, 093 

8,830 

7,721 

2,929 

11,789 

2,433 

10,718 

2,359 

2.163 

.      1.751 

4,005 

2,614 

706 

3,990 

250 

3,097 

1,658 

1.600 

4,279 

5,506 

5,046 

1,531 

5,006 

2,058 

10,  883 

1,457 

1,336 

4,249 
30  . 

5,506 

5,046 

1,531 

5,006 

2,058 

10.  883 

1,457 

1.336 

.      3, 328 

3,505 

2,559 

1,294 

5.572 

590 

2,484 

675 

626 

.      3,328 

2,907 

2,022 

1,006 

3,910 

497 

2,011 

519 

476 

598 
5,216 

537 
4,116 

■  288 
989 

1,652 
4,587 

93 
1,895 

473 
6,216 

156 
1,232 

150 

.      1,187 

1.130 

1,180 

5,170 

4,077 

976 

4,512 

1,879 

6,056 

1,222 

1,120 

7 

45 

39 

13 

75 

16 

160. 

10 

10 

.      2,012 

2,640 

2,390 

1,242 

5,685 

474 

2,838 

674 

622 

.      1.952 

2,349 

2,065 

1,117 

4,982 

361 

1,712 

588 

539 

60 

29! 

324 

125 

7oa 

113 

1,126 

86 

•83 

1,168 

2,348 

1,002 

609 

2,353 

204 

1.068 

189 

177 

783 

2,066 

740 

440 

1,460 

204 

1,068 

96 

87 

385 

282 

262 

169 

893  . 

93 

90 

.      2,029 

1.742 

1.486 

131 

722 

926 

5,114 

429 

394 

521 

1,617 

1,382 

60 

323 

893 

4,814 

429 

394 

.       1,508 

125 

104 

81 

399 

33 

300  . 

712 

1,890 

1.103 

163 

553 

618 

3,  341 

321 

294 

3,418 

9.650 

6,112 

2,414 

11,587 

2,130 

11,966 

1,568' 

"1,473 

403 

3,972 

1,975 

880 

4,615 

722 

2,848 

373 

350 

2  666 

3,  973 
1,705 

2,810 
1,327 

1,167  . 
367 

■■"2,"  156' 

811  . 
597 

832  . 
363 

349 

6,203 

350 

.    35,490 

61,901 

45, 030 

16,944 

73, 073 

15,119 

70,  823 

12, 967 

12,038 

.      3, 226 

3,031 

1,914 

459 

2,299 

995 

2,660 

460 

501 

46,944   17,403   75,372   16,114   73,483   13,427   12,539 


42 


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43 


TABLE  VII.— PUBLIC  LAW  480  TITLE  II  SHIPMENTS  BY  SPONSOR 
(In  metric  tons  grain  equivalenll 


Fiscal  year- 


Item 


1972 

1973 

1974 

1975  estimate 

1975  projected 

1,637,146 

1.  065,  982 

705,977 

750. 4S2 

620, 652 

1,018.749 
279,118 
109, 400 
229  879 

710.  560 

285,  578 

64,  820 

5,024 

496, 945 

170,297 

37,754 

980 

432,578 
275, 192 
32,  527 
10,035  . 

281,005 

298, 532 

41,115 

380,  318 

351. 127 

341,518 

366,  469 

310.040 

226.  669 
111.980 
20,  S53 

250,  C47 
95,180 
14,  514 
1,385  .. 

179,279 

150,  847 

11,392 

202,  271 
111,929 
13,830 
38.439  . 

204,  225 
92,  527 
13,288 

21  116 

2,017,464 

1.  427. 109 

1,047,495 

1.116.951 

930, 692 

689,  090 

844, 048 

456,  200 

318.  329 

374, 057 

416, 163 

643,  312 
135,  839 

32. 177 

32,720  .. 

61.514 

390,300 

4.386 

66, 188 
127,319 
2.322 
122, 500  . 

133.703 

99,  428 

236. 938 

57. 183 
116.316 

3.416 

.   2,  706.  554 

2.271,157 

1.  503.  695 

1. 435. 280 

1.  304. 749 

Voluntary  agencies  total 

Wheat 

Feed  grains 

VeRoii 

Otner 

World  food  program  tcta! 

Wheat 

Feeograin.'; 

Vegoil 

Other 

Subtotal  voluntary  ajcncies  and 
world  food  programs 

Government  to  Government  total.. 

Wheat 

Feedgrains 

Vegoil 

Other 

Grand  total 

Wheat 1,661,581 

Feedgrains 490. 526 

Vegon 187, 136 

Other : 367, 311 


1,603.919 
516, 597 
111,511 
39.130 


737, 739 

711.444 

53, 532 


701, 137 
514, 440 
48,679 
171,024 


618.933 

627. 997 

57, 819 


o 


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